Amgen surges after Morgan Stanley upgrade

Amgen (AMGN.US) stock surged more than 6.0% after Morgan Stanley upgraded the biopharma company to overweight from equal weight, saying Amgen is “largely de risked” and provides defensiveness for investors.

Analysts believe the market is not appreciating upside potential that stems from the potential of obesity candidate AMG133, which could differentiate itself against others in the competitive obesity market through better weight loss, improved dosing frequency, and better tolerability.

Amgen (AMGN.US) stock rose sharply on Tuesday and managed to break above local resistance at $244.50, which coincides with 23.6% Fibonacci retracement of the last upward wave. Nevertheless, upward move was halted at the upper limit of the triangle formation and as long as price sits below, another downward impulse may be launched. Source: xStation5