Where Do Investors Buy? $AMGN Crushed On Drug Data And Cost

Shares of Amgen, Inc. (NASDAQ:AMGN) took a thumping today after they announced slightly better data on a cholesterol drug, compared to its peers already on the market. The problem is, the drug costs $15,000 a year and insurance companies will likely not cover the drug because it is only slightly better than what is on the market. The stock dropped over 6% and many investors rushed to buy it. That is a mistake. The stock will continue to trend lower until it hits $160.00, a major support gap fill level. The reasoning is simple. First, investors should never buy a gap lower on negative news from a stock at all-time highs. There will be more trimming of positions in the hedge fund industry and possibly analysts downgrading the stock. In addion, there is no major technical support that is strong enough to justify a buy level. The $160.00 level is major. Buy it there.