Today’s stock of the day is Amgen, which is presenting a very clear bearish technical structure.
The broader uptrend has been invalidated by a head and shoulders pattern marked with blue lines. This formation typically signals a trend reversal, and in this case, it has already been confirmed. The price broke below the green neckline, activating the pattern and initiating a move to the downside.
In addition to that, the price also broke below the orange uptrend line, which had been supporting the previous bullish structure. The combination of a neckline break and a trendline break clearly shifts the sentiment to the bearish side.
Recently, we can see a small bullish correction. However, this move does not change the overall picture. As long as the price remains below the green resistance, which is the former neckline, the sentiment stays negative.
Only a move back above that green resistance would invalidate the bearish setup and generate a buy signal. Until then, the current structure favors continuation to the downside.