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Sell These 5 Toxic Stocks Before It's Too Late

Amgen

First up is Amgen (AMGN - Get Report), the $63 billion biopharmaceutical stock. For the last few weeks, Amgen had been looking bullish -- until shares broke down below support, that is. A failed bullish pattern is generally worse than an outright bearish pattern, and AMGN has been proving that point with its price action for the last few trading sessions.

Amgen had been forming a an ascending triangle pattern, a bullish setup that's formed by horizontal resistance to the upside at $90 and uptrending support below shares. Ultimately, the selling pressure at support proved stronger than buyers had figured, and when bids disappeared at that support line, this stock went into freefall. In a big way, AMGN is a cautionary tale of why it's critical to wait for a breakout to actually happen before jumping onboard a breakout trade.

Now AMGN looks likely to resolve further to the downside. Investors looking for an exit should sell now before January 23 earnings hit - while they could put shares back on track, the headline risk coupled with a bearish chart make it too much of a gamble...
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SYM TRADE IT LAST %CHG
MSFT $44.22 -0.51%
RYAAY $72.85 0.50%
REGN $511.02 0.89%
AMGN $153.33 -1.10%
BHP $41.34 2.10%

Markets

DOW 17,704.79 -53.12 -0.30%
S&P 500 2,072.10 -5.32 -0.26%
NASDAQ 4,995.8940 -17.2290 -0.34%

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