Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Amgen Inc. (NASDAQ:AMGN) is right near the bottom of a more than 6-year trend channel.
That presents a potentially good buy point. The stock also has a long history of strong fundamentals. Therefore, this could be a trade that lasts two to six months, or it could be a long-term hold.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The AMGN Entry Point
When AMGN bottomed in 2019, 2020, 2021, and 2022 the price made a low, bounced slightly, and then dropped to a slightly lower low. The rallies commenced after that.
In 2023 the price has made low near the prior established trendline. It has bounced slightly and now the wait begins to see if the price will make a slightly lower low again before commencing its rally back toward the top of the channel.
(right click on the image, and select "Open image in new tab" to see the full-size version)
Chart source: TradingView
The recent drop from the November peaks is 20%. Prior drops during this trend channel have been 21% to 28%.
Wait to see if the price drops back below the Feb. 2 low of $236.37. If it does, and then rallies back up, consider a long trade if the price moves back above $244.50.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Even if the price doesn't make a new low, a rally above $244.50 could provide a good entry point, with a stop loss approximately 7% below. This gives the trade some room, but also limits risk in the event the price continues lower.
The AMGN Price Target
Prior rallies off the low of the channel have run 30% or more. Therefore, a target between $318 and $320 is 30% above the $244.50 entry.
The target, which is based on the historical pattern of the stock, also provides a nice reward/risk ratio. 30% upside versus 7% downside.
There is also the option to hold this stock for the longer-term. The reasons for that are discussed next.
AMGN Fundamentals
Amgen has a strong fundamental history. Here are some summary points to consider.
- 35% yearly earnings per share (EPS) growth over the last five years. On the downside, that is expected to slow to 4.1% yearly growth over the next five.
- AMGN has a dividend yield of 3.6%. It has increased the dividend every year for over 15 years. The dividend amount has increased an average of 10% per year over the last five years.
- It is one of the more stable stocks in the US market. Its biggest decline over the last decade is less than 30%. More than half of S&P 500 stocks have dropped at least 50%.
- The stock outperforms the S&P 500. AMGN had an annualized yearly return of 13.9% vs 12.6% for the SPDR S&P 500 Trust (NYSE:SPY) over the last decade.
With a steadily growing dividend and EPS growth, historically smaller declines than most stocks, and strong long-term performance, this is a decent stock to also consider parking in the portfolio for the long term.
Disclaimer: The author has no current positions, but may initiate a position over the coming weeks if the conditions discussed materialize.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.