Swing Trade Idea – (AMGN) – October 20, 2020
Our bearish trade for Tuesday, October 20th is AMGN Inc (AMGN). AMGN is part of the Healthcare Sector (XLV). XLV has experienced a 6.88% decline in the last month and has failed to break above the $109 resistance level on multiple occasions.
AMGN’s 1M trend turned bearish on October 8th and its 6M trend has been bearish since October 16th. Price has broken below the $233 support level and this provides a good risk/reward entry for a short position. With a technical score (2 out of 10), AMGN is a very weak stock that will likely continue lower.
As a stop loss, if AMGN were to trade above $240.00 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $11.00.
