Keep An Eye On This Biotech Stock
InTheMoneyStocks.com | May 30, 2019 03:04PM ET
Most of the leading biotechnology stocks have been very weak over the past couple of months. The SPDR S&P Biotech ETF (NYSE:XBI) and iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) have both declined by more than 10 percent since early April 2019. Unfortunately for this industry group there looks to be more downside in the cards, near term.h3 Technically Weak/h3
One particular biotech stock that has been under pressure recently is Amgen (NASDAQ:AMGN), which traded as high as $196.87 a share on April 5, 2019. Today the stock is trading at $168.72, so traders and investors can easily see that it has declined sharply in a short time span. Shares of AMGN are now trading below their 200-week moving average, which puts the stock in a weak technical position and signals further declines to comes. Amgen looks to have a lot of support around the $160 level – an area that should be defended when initially tested. It is also a level that was supported in June 2017 and that tells me this trade area should provide a nice bounce for the stock.
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