Wednesday, June 17, 2009
AMGN Attempts A Breakout
As the Marketclub chart above shows, AMGN is now in a monthly uptrend by a making a new 3 month high today. While it failed to breakout convincingly, I believe it is just a matter of time. The wave count, not shown, would appear to put AMGN in wave 3 of (3). This means that price should hold up around these levels and explode upward. I have been dutifully holding on to my half position since late April when I was stopped out of a short position and reversed to go long. Today I added to the position. If it pulls back on light volume and forms another pivot, I will add to it one more time on the next breakout below 55.00.
Overall, the market action today was mixed as the SP500 and NYSE logged another distribution day while closed up on higher volume. I expect the action will choppy to up for the next day or two before the correction resumes, but it could breakdown at anytime.
Posted by R. Craig Pritchard at 4:36 PM