Amgen, Inc. (NASDAQ: AMGN ) – This company is among the leading biotechs in
the world. Until recently, biotech stocks were among the worst performers of
2010. But relative strength studies show that the sector is emerging as a top
performer with many undervalued, high-quality companies at reasonably low
price-to-earnings multiples. As a leading investment-grade stock in the sector,
AMGN is a top choice for a long-term investment. After languishing for three
years within a 20-point trading range, the stock is reaching the apex of a
triangle that will most likely break to higher prices. Note the recent surge
in volume, along with a trading gap at $54 to $55 and a strong buy signal from
the Moving Average Convergence/Divergence (MACD) indicator. AMGN could retrace
back to support at $54, but a high-volume break through $58 would be a strong
signal that a major move higher is about to occur. S&P maintains a four-star
buy on AMGN with a 12-month target of $68. If you have questions or comments for
Sam Collins, please e-mail him at samailc@cox.net .
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