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Swing Trade Idea (AMGN) – August 22th, 2023

Our bearish trade for Tuesday, August 22nd is Amgen Inc. (AMGN). AMGN is part of the Health Care Sector, which has performed at -1.77% over the last week, with AMGN performing at -0.10% over the same period, as it recently turned bearish.

AMGN recently topped at around $270 which is a key area of resistance. As the Health Care Sector also traded into an area of resistance, AMGN is following suit and is therefore expected to respect this price band as resistance and pull back to lower levels. The next area of support is at $250 and then $230.

As a close, if AMGN were to trade above $270 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $2.61.