Amgen Poised For Another Steep Drop

Shares of Amgen (AMGN) - Get Report could be facing a deep selloff. Last week it hit fresh June lows, putting the stock in a vulnerable technical position. Amgen needs to hold key support from April and May lows or last week's selling could gain a second wind. Late April Amgen hit new highs for the year moving up from March lows at $160 a share. The stock hit major resistance just below $165 and shifted into pullback mode eventually falling below its 200-day moving average and retracing 75 percent of the March through April rally. That pullback did heavy damage as did last week's selloff with shares again closing below the 200-day moving average. This signals more pain ahead.

This article was written by a staff member of TheStreet.