Amgen Elliott Update (enter Long @81.05, enter Short @78.05)

Trading Strategy 1. Enter long at 81.05, stop loss 76.65. 2. Enter short at 78.05, stop loss 80.70, take profit at 72.0. 3. Should the price fall below 75.50, set the trailing stop at Low+1.50 4. Update scenario when the price makes a new high above 80.52 or a new low below 76.70 or if there is more certainty about price motion in the shorter term. Our buy limit order at 81.05 entered last Monday has not been hit and the price went down almost immediately after market opening on Monday. During the last two trading sessions the price went higher but has not reached our limit order....Read more The situation has not changed much compared to our previous outlook. Since the price made a new low we should update the target zones for the current wave. Wave 3 of the Impulse is expected to complete in the price range 86.52 to 146.12, but more probably between 88.01 and 101.92. This wave is most likely to complete sometime between 22-Dec-2005 and 20-Jan-2006 Note that it cannot complete until 19-Dec-2005 but must complete by 17-Mar-2006. * Note this analysis has two important drawbacks: i) it is based on the End-of-Day price data while some patterns could be hidden in the intraday patterns; ii) in the long and medium term high rating counts can be found only for the “Hidden waves ON” option which means that the software can assume some patterns are hidden within the daily bars. There is a chance that the valid scenario is the alternative outlook mentioned last week “The alternative scenario assumes that the current zigzag pattern was completed on 22-Nov-2005 although the price did not reach high probability price zone for the higher degree double zigzag wave. In such a case the market should continue down in the impulsive wave as it was described in the Scenario 2 on October 30.” We can not distinguish between the alternatives because in the short time frame there is no Elliott pattern with a rating high enough to make trading decisions. Both factors reduce reliability of the outlook and some precautions should be taken into account in the trading plan.

Tech Tags: AMGN Amgen Technical+Analysis Elliott Elliott+Wave Stock Investment