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September 18 Chart of the Day - Amgen

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The Federal Trade Commission last week allowed Amgen (AMGN) to move forward with its $27.8 billion acquisition of Horizon Therapeutics under a settlement agreement – a move that could have ramifications for a string of other pharmaceutical industry buyouts.

We often debate whether or not price action technical analysis drives price movement or news...

For the past decade the stock price has been consistently making higher highs and higher lows as seen on the monthly chart. By definition a clear uptrend.

Dropping down to the weekly chart allows one to see more volatility and the cycles between the higher highs and higher lows.

Price currently is flirting with a "change control zone" roughly between $260 - $265.

Change control zones are one of the five tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Some analysts have recently published price targets in the $280 area.  Might they be right? Technically speaking sure, $280 is in play.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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