Late last week, shares of Amgen (AMGN) - Get Report reached a key support zone after a steady decline from the Nov. 9 peak.

The stock began to rebound on Friday and extended the gain on Monday with a little help from Oppenheimer. Analysts there initiated the stock with an outperform rating and a $166 price target. Amgen gained 1.6% on the news and is set up well for more upside. 

On Nov. 9, Amgen was up over 10% at its high point. The stock was unable to maintain that post-election momentum and quickly began to fade. Amgen drifted lower through the remainder of the month but appeared to be stabilizing as December began.

Last week, though, shares came under pressure once again as downside volume picked up. The stock looked to be headed for a retest of its post-earnings low, but fortunately for the bulls, a very solid support zone near $140 held up well.

With the stock now lifting off this area, a downside risk marker is nearby.

In the near term, patient investors should take a more positive view of this A- rated stock. Amgen now has a very solid support zone in place from the $142 area down to the $139 area. The stock's powerful post-election breakout gap, as well as the 40-week moving average, rests near the lower band. If Amgen can continue to gain traction above this area, a healthy rebound could follow.

On the downside, a close back below $138 would indicate that more basing and a possible retest of the November low is on the way. Until then, Amgen is near a very low-risk buy zone.

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This article is commentary by an independent contributor. At the time of publication, the author was long AMGN.