Sometimes in a bear market a handful of stocks remain closer to their highs before rolling over. Amgen (AMGN) could face such a condition.

The main pattern on today’s chart are the candlesticks of July 8, 11 and 12. The drugmaker attempted to push above $249 but each time closed below that level. Also notice how this price area roughly matches the closing price before the high-volume bearish gap on April 28.

The result could be a lower high. This may indicate sellers are back in control, especially with a potential double top near $258.

Next, stochastics are dipping from an overbought condition.

Finally you have the 50-day simple moving average (SMA), which AMGN held on Thursday. A break under this level could make traders expect a retest of the recent lows below $230.

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Candlestick AnalysisTechnical IndicatorsSupport and Resistance

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