The analysis of the stock you mentioned (AMGN) Daily Frame
suggests the presence of a rising wedge pattern, indicating a potential price correction after a false breakout. Here’s a breakdown of the points mentioned:
Rising Wedge Pattern: This type of pattern typically appears in bullish markets, but it can turn into a bearish reversal if the lower boundary of the wedge is broken.
False Breakout: A false breakout occurs when the stock briefly exceeds the upper boundary of the pattern but fails to sustain the upward momentum, leading to a price correction. If the lower boundary of the wedge is confirmed to be broken, this could signal the beginning of a downtrend.
Breaking the Rising Wedge: A confirmed break of the wedge suggests that the upward trend is over or may be in the process of reversing into a downward trend.
Sell from the Next Session: Based on this technical analysis, the plan is to enter a short position (sell) with a stop loss if the price rises above $338.5, which is identified as the upper resistance level.
Price Target: The suggested support levels where the stock could potentially drop to are between $213.64 and $203.