AMGN’s at a confluence of Fibonacci projections.
Yesterday’s update hinted that AMGN was in a special situation. This is a brief detail of conditions.
First, let’s understand that momentum indicators, MACD on monthly, weekly and daily, all point higher.
If we’re at the downside reversal, the inflection, we’re documenting in real time how it’s taking place.
On the chart, two Fibonacci tools are in use; a retrace tool and a projection tool.
The retrace is from the all time high posted on 1/28/21, to the most recent low on 3/4/21.
The projection tool has been placed on the recent upward action from that low and estimating where the a-b-c (corrective) waves are terminating.
The market itself determines what levels are important. This is one of the main Wyckoff tenets presented by him over a century ago.
It’s clear price action is hesitating at the confluence of a 38% retrace and 100% projection (‘a’ and ‘c’ waves equal) on the chart.
Since AMGN is the largest cap in the IBB, ETF, its behavior has an outsized effect.
A downside reversal from this point, the 38% retrace level, would indicate significant weakness for AMGN.
We also have today as Fibonacci Day 34, from the all time high.
The retrace high may have been yesterday or we may get it today … right around 2:00 p.m. EST, at the Fed announcement.
Update: As this was being written, AMGN just posted a new retrace high.
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