Celgene (CELG) — This company develops small molecule drugs for the treatment of blood-borne and solid-tumor cancers and inflammatory diseases. The stock was on my list of Top Stocks to Buy for December, near $164, and has been on the Trade of the Day buy list for over a year.
On Oct. 4, I said, “On Jan. 9, with CELG just above $ 91, I noted that S&P said it had ‘the brightest growth prospects among large-cap biotech companies.’ And on March 18, at $111.25, I pointed out that it had broken from a cup-and-handle formation with a target of $125.”
S&P has raised its target several times this year, recently boosting it to $188 from $172. Earnings are estimated at $5.36 this year and $6.54 in 2014.
Technically, the stock is in a powerful bull channel with support roughly at its 50-day moving average at $155. CELG can be volatile, but an increase in buying in the last two weeks is telling us that a breakout through the upper resistance line is likely.
Buy now with a trading target of $180. A trailing stop-loss order should be entered under $155.
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