by Sam Collins | December 9, 2013 1:00 am
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.
P.S. – Traders looking to Serge Berger’s free “Beat the Bell” service every morning will be putting themselves in capable hands.
Serge has worked for InvestorPlace for years now, and has filled in for me on the rare occasion I take a few days off. Every time I return, I see plenty of reader compliments about Serge’s work.
Serge’s technique involves swing trades in stocks and ETFs that last anywhere from two days to four weeks. He is frequently successful in capturing high-probability trades that are set up at confluence zones of support/resistance using candlesticks as his charting method.
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– Sam Collins, InvestorPlace Chief Technical Analyst
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