My longer-term work on Amgen (AMGN) argues very strongly that the massive coil formation that has been carved out since the March 2008 low at 39.16 is morphing into a major base-like pattern that has the set-up and the potential to propel the stock to test its multi-year resistance at 65.00-66.50, possibly on the way to 70.00 thereafter.

As long as last week's low at 54.77 remains intact, my current very bullish scenario is my preferred outlook. Key near-term resistance resides at the Dec rally peak of 57.98, which if (when) hurdled will trigger strong buy signals that AMGN is starting to fulfill its technical upside potential.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.