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Amgen, Inc (AMGN) is a large biotechnology company with a focus on medications that utilize molecular biology and biochemistry. Its vast portfolio of products includes oncology/hematology, cardiovascular diseases, neuroscience, immunological inflammation, bone health, and nephrology. It has also expanded its portfolio in biosimilar products. AMGN is listed on Nasdaq and is a component on DJI, Nasdaq100, and S&P 500 under Healthcare.

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During Oct 2021, AMGN price consolidated, then attempted a small rally followed by a correction to retest $194. The bar on 30 Nov 2021 seemingly is a down bar, but the high volume suggests the absorption of supply. This is confirmed by the sign of strength rally that extended until $230 on 14 Jan 2022. In a typical Wyckoff accumulation phase, forming a narrow range, hit a Wyckoff upthrust then retrace to around $220 before the price did a Wyckoff spring with a demand tail.

Subsequently, the price found the momentum to launch into another significant sign of strength rally before halting at $254 on 11 Apr as a buying climax. The automatic reaction (AR) was quite rapid and defined a range between $223 and $254. The next rally peaked at $256 on 1 June but did not follow through and retrace instead. However, the spike in volume on 17 June suggests the presence of demand.

Between mid-June and early September, the price was mainly in the consolidation phase with low volume. Then price dramatically gap down on 12 and 13 September with a localized increase in volume. It retested a low of around $224. Nevertheless, there was no panic spike in volume suggesting exhaustion of supply.

The sign of strength rally afterward had bigger spread bars and challenged the previous high of $254. The price did a mini pull back then broke out on 24 Oct and committed above $260. 
       

Bias

Bullish. There is no immediate threatening supply hence the price could continue to climb higher. However, the price would likely do Wyckoff backing up action to retest around $255 or dip slightly lower before a meaningful upswing ahead.

Recent volatility in the market makes it hard to identify winning stocks. It is essential to focus on the outperforming stocks in the leading sector and adopt the Wyckoff method to help pinpoint the trade entry. 

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