This three-year relative strength chart shows that most of the time, drugmaker Amgen (AMGN) has dwelled in the Red Unfavored Zone of the SIA S&P 100 Index Report with a few short-lived pops up into the green zone. After climbing up the rankings in late 2023, Amgen dropped back out of the green zone in February and yesterday it fell back into the Red Unfavored Zone after falling 6 spots yesterday and 28 spots in the last month to 53rd place.
Over the last month, Amgen has declined by 12.2%, while the S&P 100 Index rose 5.3% and the SIA Drugs Equal Weight Index rose 4.75%, meaning that Amgen has been underperforming relative to both the broader market and its sector peers.
Candlestick Chart Breaks Down on Volume Again:
This one-year chart shows how the accumulation trend in Amgen (AMGN) that prevailed through late 2023 and early 2024 has peaked and reversed course. The tipping point came in early February when the shares sold off on volume and broke down below their 10-day moving average.
In recent weeks, the shares have come under distribution, trending downward below their 10-day average and snapping an uptrend line. A recent rebound attempt failed at the 10-day average and two gaps ended up forming a bearish Island Top, trapping bulls offside. Yesterday, AMGN sold off on volume again confirming that a new downtrend is underway.
Based on previous lows, next potential downside support may appear near $260.00 or $245.00. Initial resistance on a bounce may appear at the 10-day moving average near $283.00.
Point and Figure Chart Pulls Back:
Amgen (AMGN) shares have been under accumulation since June, an uptrend that carried the shares to new all-time highs between December and February. In recent weeks, however, the shares have been falling back in what so far has been a normal correction, but by retracing more than 50% of their previous X column, they have generated a bearish High Pole Warning.
A close below initial support near $249.75, just below the $250.00 round number would complete a pending double bottom and signal the start of a new downtrend. Should that occur, next potential support may appear near $240.05 or $230.75 based on previous column highs and lows. Initial resistance on a bounce appears near $298.50 based on a 3-box reversal.
With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, AMGN is exhibiting short-term weakness against the asset classes.
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