AMGEN Inc American stock looks really nice after a strong rally, waiting for a pullback to weekly demand imbalance around $178 to buy the underlying stock.
We don’t need any fundamental analysis on a stock to take a trading decision, but if you are interested, Amgen AMGN has been a laggard. Amgen’s slump had to do with the stock’s slowing growth outlook and the ever-present headwinds the healthcare sector faces heading into an election year.
However, Amgen could address its growth slump. That’s exactly what management did in August, causing the stock’s price to spike. Yet, in the past five weeks, Amgen shares have cooled off, giving investors who were previously experiencing fear of missing out on the trade the chance to get into the stock at a discount to recent highs.
Where is the place where those investors can plan to buy AMGEN again? Well, if you look at the attached weekly chart technical analysis, the whole movement started at $178, creating a very strong weekly demand level. That’s where we can buy AMGEN inc again. Will the underlying stock price retrace to that strong imbalance? We don’t know, but we are interested in buying AMGEN Inc stock down there. Could the trade be a loss? Definitely, but that’s what trading is all about. Rules tell us that we can go long down there at that strong imbalance on the weekly timeframe, and that’s what we will do unless the trend changes once the price retraces down there.
Not only in a potential investor receiving attractive value at that demand imbalance, but they will also benefit from the company’s strong dividend. This share price weakness has already pushed Amgen’s dividend yield back to the 3% range. Historically, Amgen announced its annual dividend increases in December. Last year, the company raised its payment by 9.8%, from $1.32 to $1.45. This year, we’re expecting to see another high single-digit raise. Looking at the forward guidance and the company’s recent payout ratios, it’s believed a 6.8% increase to $1.55/share makes sense.
Watch the AMGN video stock analysis below, recorded a few weeks before this analysis. We are waiting exactly for the same thing.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half-time job; you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to a pullback or dip into the price levels we want to trade, in our case, these price levels are made of supply and demand imbalances.
There are several ways of buying stocks. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.
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