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Amgen Inc. - (AMGN) - October 12, 2023

Biotech giant Amgen (AMGN) spent most of the first half of this year stuck in the red zone of the SIA S&P 100 Index Report. Since August, however, it has been steadily making its way back up the relative strength rankings. Yesterday, after jumping 11 positions to 25th place, capping off a gain of 26 places in the last month, Amgen returned to the Green Favored Zone for the first time since December of 2022. Over the last year, Amgen (AMGN) shares have nearly completed a round trip between $285.00 and $210.00. Seven months of steady selling came to an end back in June. Following two months of base building, Amgen decisively broke out of its downtrend in August and since then, it has continued to consistently climb, with higher lows establishing a new uptrend, most recently confirmed by a bounce up off of trend line support near $260.00 which remains in place.

The shares are currently approaching initial resistance in the $280.00 to $285.00 zone. A breakout there would signal the start of an advance to new highs. Next potential resistance may emerge near the $300.00 round number, followed by $330.00 and $360.00 on trend based on measured moves.

Back in August, Amgen (AMGN) shares successfully tested a long-term 45-degree trend support line near $212.50. Since then, the shares have been under renewed accumulation, rallying back up above $280.00 without even a 3-box correction along the way, even in recent weeks when the overall market pulled back.

Currently, AMGN is retesting its December 2022 peak near $285.95. A breakout to a new high would complete a pending spread double top pattern and signal the start of a new advance. Should that occur, next potential resistance may appear near the $300.00 round number, followed by $309.55 based on a horizontal count, and $362.65 based on a vertical count. Initial support appears near $259.00 based on a 3-box reversal.

On a side note, check out the ellipse in the chart. That is an incredibly rare Spread Sextuple Top pattern breakout which ended nearly two years of sideways consolidation.

With a perfect SMAX score of 10, AMGN is exhibiting strength across the asset classes.

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