Shares of Amgen (AMGN) - Get Report closed at new 2016 highs yesterday following a very volatile post earnings session. After the bell on Wednesday, the biotech giant released its second-quarter results. Amgen initially fell despite the strong results and was still in the red at Thursday's open. But by the time the dust cleared on Thursday, the stock had earned a 0.35% gain.

This extremely high-volume move has set the stock up well for more upside.

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Since the Brexit low on June 27, Amgen has been on fire. A day ahead of Wednesday's news, the stock was up over 18% from last month's low. Along the way, Amgen moved past multiple layers of resistance. By July 8, the stock was taking out the June high, and at the beginning of this week, major resistance near the $165 area was giving way. This important zone, which includes the October, November and December highs of last year as well as the April 2016 peak, will provide solid footing as a new rally leg develops.

Yesterday's rally was Amgen's seventh straight gain. With the stock beginning to enter overbought territory as the week comes to a close, a healthy pullback may be needed soon. For patient bulls, this will create a very low-risk entry opportunity. A fade back down to the $166-to-$164 area should be considered a buy. If the stock can base here while working off its overbought moving average convergence/divergence reading, a fresh rally leg will have a solid foundation for a run up to the 2015 highs near $182.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.