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- Amgen, Inc. (NASDAQ: AMGN) price prediction portrays the image of a downtrend, which is the result of a correction.
- AMGN stock delivered a year-to-date loss of 12.73%.
- AMGN stock is traveling a descending channel pattern which could be the key to a reversal.
Amgen, Inc.’s (NASDAQ: AMGN) price prediction uncovers the downtrend of the AMGN stock price, which is due to the correction phase. The market has been sliding down after the AMGN stock price printed a fresh all-time high of $296.67 in 2022. The correction has caused the price to decline by 23.47% to its current levels. The bulls stepped in and bought the stock at the support price of $213.
At the time of writing, Amgen, Inc. closed its trading session on Thursday, 13th July 2023 at $227.66. This marked a jump of 0.88% over the previous day.
Can Amgen, Inc. Escape the Descending Channel?
Amgen, Inc.’s stock price prediction showcases a bearish market structure as the price creates a series of lower highs and lower lows as it breaks through multiple supports. The daily chart indicates that the AMGN stock price is trading below the 200 EMA. This clearly indicates a downtrend where the sellers are in control.
The AMGN stock price is traveling in a descending channel as it moves down. The bulls, however, showed some interest in the support and helped the stock recover 7.67%. Another reason for the recovery is the fact that the price action and the RSI formed a bullish divergence, where the stock price created a lower low in contrast to the higher low on the RSI.
The Market Crawls towards the Resistance
Analyzing the 4-hour chart reveals that the market is trying to reclaim the local resistance of $230. A successful break above this resistance will bring the AMGN stock price closer to the upper trendline of the descending channel. If the price manages to make a sustained breakout of the descending channel, the market may again shift its momentum to bullish, and the price can start rising again.
However, it’s important to keep in mind that the upper trendline of the channel aligns with the 200 EMA, which will act as resistance. Since the AMGN stock price is in a downtrend, the price can get rejected by the resistance, and the market can witness another leg down, possibly to the lower support of $200.
RSI
The RSI indicator is currently at 55.28. It is a condition where the market is slightly biased to the upside, but the price won’t show momentum until RSI crosses 70.
MACD
MACD made a bullish crossover above the 0 line. However, the MACD and the signal line are moving close to each other near the 0 line. This indicates that the price may move sideways until the indicator crosses the 0 line.
200 EMA
On the 4-hour chart, the price is trading below the 200 EMA. It indicates that the market is under sell pressure and the bears are in control. The 200 EMA will act as significant resistance. The AMGN stock price will continue to move down until it breaks above the indicator.
Conclusion
Amgen, Inc.’s (NASDAQ: AMGN) price prediction uncovers the downtrend of the AMGN stock price, which is in its correction phase. The stock price spent the last few days in green, but there are no major signs of reversal. A breakout of the descending channel will be the most relevant buy signal. Investors should wait for a powerful breakout with volume support before considering any buying decisions. Moreover, investors should navigate the upcoming volatility with proper risk management to keep losses in check.
Technical Levels
- The nearest support level: $229.81
- The nearest resistance level: $243.09
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
