AI Trading Robot Capitalizes on MACD Trend to Secure 4.47% Profit for $AMGN
Last week witnessed a strong performance from biotech firm Amgen (AMGN), with an artificial intelligence (AI)-based trading robot facilitating a 4.47% gain. This feat underlines the growing potential of AI in stock market trading. Specifically, the AI trading robot was able to leverage technical analysis, using the Moving Average Convergence Divergence (MACD) indicator, to exploit the inherent market opportunities.
For the uninitiated, the MACD is a trend-following momentum indicator that displays the relationship between two moving averages of a security's price. It involves subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. A nine-day EMA of the MACD, known as the "signal line," is then drawn on top of the MACD, which can function as a trigger for buy and sell signals.
In AMGN's case, the MACD turned positive on July 11, 2023, signaling a potential upward trend. This signal is considered bullish, indicating that it may be an optimal time to purchase shares. Historical analysis supports this: when AMGN's MACD turned positive in the past, the stock continued to rise in 27 out of 41 cases over the subsequent month, suggesting an upward trend continuation probability of 66%.
The AI trading robot capitalized on this signal, generating a profitable return of 4.47% over the course of the week. This was not a random outcome; rather, it demonstrates the efficacy of AI in discerning and acting upon complex market signals in real-time.
AI's success in this context lies in its ability to process vast amounts of data quickly and accurately, something that would take a human trader significantly more time. In addition to speed, AI can consistently apply trading rules without allowing emotions to interfere, a common pitfall for human traders.
In AMGN's case, the AI trading robot's strategy relied on the MACD's positive turn, an indicator that was substantiated by historical trends. It's a reminder that, while technical analysis cannot predict future price movements with 100% accuracy, it can provide valuable statistical insights into potential market behavior.
The AI trading robot's impressive 4.47% profit generation last week for AMGN illustrates the promising potential of AI in stock market trading. It serves as a testament to the potential synergy of technology and financial market, delivering significant returns based on reliable technical analysis tools like MACD. As the field of AI continues to evolve, we can expect an even greater precision and consistency in trading strategy execution, marking a new era of algorithmic trading.
AMGN sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for AMGN moved above the 200-day moving average on September 08, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 14, 2023. You may want to consider a long position or call options on AMGN as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AMGN just turned positive on September 19, 2023. Looking at past instances where AMGN's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMGN advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMGN moved out of overbought territory on September 21, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMGN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMGN broke above its upper Bollinger Band on September 20, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for AMGN entered a downward trend on September 18, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AMGN's P/B Ratio (21.231) is slightly higher than the industry average of (6.183). P/E Ratio (18.116) is within average values for comparable stocks, (31.826). Projected Growth (PEG Ratio) (2.044) is also within normal values, averaging (3.312). Dividend Yield (0.031) settles around the average of (0.028) among similar stocks. P/S Ratio (5.438) is also within normal values, averaging (3.727).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMGN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of human therapeutic products based on cellular biology
Industry PharmaceuticalsMajor
AMGN and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMGN has been loosely correlated with GILD. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if AMGN jumps, then GILD could also see price increases.
| Ticker / NAME | Correlation To AMGN | 1D Price Change % | ||
|---|---|---|---|---|
| AMGN | 100% | +0.68% | ||
| GILD - AMGN | 52% Loosely correlated | -0.17% | ||
| JNJ - AMGN | 48% Loosely correlated | -0.15% | ||
| BMY - AMGN | 45% Loosely correlated | +0.43% | ||
| ABBV - AMGN | 42% Loosely correlated | -0.57% | ||
| MRK - AMGN | 39% Loosely correlated | +0.35% | ||
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