Amgen Inc. (NASDAQ:AMGN) has been robust lately. The stock established a strong support at the oversold level of $233 in early May. The main catalyst for the gains in Amgen stock has been its quarterly results which came better than expected.
As Amgen reported its first-quarter 2022 results on April 27, analysts expected a $4.13 per share earnings. The company reported $4.25 per share, which was also higher than $3.70 in the prior year. A revenue guidance of between $25.4 billion and $26.5 billion was within a guidance of $26.1 billion.
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The strengths of Amgen happen as analysts bank on big biotech firms amid declines in most sectors. In an investors’ note on April 27, UBS analysts said Amgen’s product lineup was a catalyst for growth. The analysts mentioned the potential for the FDA filing for lecanemab in the second quarter. As biotech names become investors’ favorites, Amgen’s confirmed strengths will be a catalyst for growth.
Bullish Amgen has more room to go higher
Technically, Amgen trades above the support of $233. The level coincided with extremely oversold conditions making it an important zone for the stock. We believe the stock will continue to go higher as it is yet to hit a resistance. Investors should hold the stock up to the region of around $248. Although the stock could rise up to the previous levels of $257, the stock could retrace back after tapping $248.
Concluding thoughts
Amgen stock will potentially go higher up to $257. However, resistance exists at $248 and a retracement could occur. Investors should continue holding the stock but $248 is an area to watch to cut positions for a chance to buy lower.
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