Amgen has been in pullback mode since the beginning of February, losing roughly 13% within the context of its long-term uptrend. For those interested in “buying the dip,” this may be a good time to revisit the stock, noting the decline looks overdone in the short term. There has been a positive reaction from AMGN to a short-term counter-trend “buy” signal from Tom DeMARK’s TD Combo model, which supports a minimum two-week bounce. The countertrend signal is compelling due to the effectiveness of the prior signal, which occurred at the June 2023 low. While these signals are intended to be short-term in nature, they can sometimes mark more significant peaks and troughs. With Friday’s reversal bar on AMGN’s daily chart, combined with today’s strength, our preferred momentum indicator the daily MACD is back on a “buy” signal. The MACD also shows a positive short-term divergence, supporting a bigger relief rally for AMGN in the near term. The bullish shift in short-term momentum should lift AMGN above its 50-day moving average. Above the 50-day, a 38.2% Fibonacci retracement level is next resistance, roughly aligning with previous peaks near $287. Support for AMGN is nearby in the $255-$257 region, defined in part by a 61.8% Fibonacci retracement level. A relief rally may yield a lower high given a long-term overbought downturn on AMGN’s monthly chart. This tends to be associated with a more challenging environment, and it may be a setback for AMGN beyond the near term within the stock’s secular uptrend channel, framed by the monthly cloud model. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.