My work is telling me that Amgen (AMGN) has an extremely bullish near and intermediate term technical set-up. Call it a giant base pattern that started in early 2007, or call it a giant coil type of sideways consolidation period. Both patterns argue for possibly acute bullish outcomes that propel AMGN towards 62.50, and then 65.00 subsequently.

Now that earnings are due for release after today's close, it is possible -- perhaps likely -- that the bullish catalyst will be coming in the form of revenues, very constructive guidance, and the company outlook for the future. Then again, earnings -- and reaction to earnings -- can be, and usually are, very tricky and volatile periods. While we are holding our AMGN model portfolio position into and through earnings because my work is telling me the chart structure is ripe for an upside breakout, I encourage you to seriously examine your own risk tolerance if you plan to hold AMGN into tonight's report.

Otherwise, take profits into today's strength, and sit tight for tonight's results.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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