Buy CELG on a Pullback or a Breakout

by Sam Collins | July 29, 2011 1:00 am

Buy CELG on a Pullback or a Breakout

Celgene Corp. (NASDAQ:CELG[1]) — A stock that should be on the list of Nasdaq bargains is Celgene. The company reported second-quarter earnings yesterday that showed an increase of 78% over the like period last year and beat analysts’ expectations.

Celgene is a growth stock that increased its revenues by 38% in Q2. Its impressive performance was led by its cancer products Revlimid and Vidaza. And the company has a number of other products in the pipeline awaiting FDA approval.

Yesterday, Celgene upped its guidance for this year to $3.45-$3.55 from $3.35-$3.40. Combined analysts’ target for the stock is mid-$70s.

Technically, CELG appears to be breaking from a broad top that extends from early last year. A breakout through the resistance line at $62 yields a target of $74. Buy on a continuation of the breakout or a pullback to support at $58.

07 29 11 celg Buy CELG on a Pullback or a Breakout

chart key Buy CELG on a Pullback or a Breakout

sam collins banner 520x64 Buy CELG on a Pullback or a Breakout[2]

Endnotes:
  1. CELG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CELG
  2. [Image]: https://www.facebook.com/investorplace?sk=app_208195102528120

Source URL: http://investorplace.com/2011/07/trade-of-the-day-celgene-stock-nasdaq-celg/
Short URL: http://invstplc.com/1bDtSWm