Pending Buy Signal Should Propel This Biotech to My Target
by Sam Collins | January 23, 2014 1:32 am
Celgene (CELG[1]) — 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[2], near $164, and has been on the Trade of the Day buy list[3] for over a year.
On Oct. 4[4], I said, “On Jan. 9, 2013[5], 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[6], 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 12-month target several times, recently boosting it to $208 from $188. It estimates earnings at $5.35 for 2013 and $6.66 in 2014 (an upgrade from $6.54).
Technically the stock is in a powerful bull channel with initial support at its 50-day moving average at $163. CELG can be volatile. The stock is arching up from its 50-day moving average, should shortly trigger a buy signal from MACD, and has an excellent chance of breaking the high at $174.66 and running to my trading target of $180.
Investors may want to buy CELG as a long-term investment in the biotech sector.
[7]
- CELG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CELG
- Top Stocks to Buy for December: https://investorplace.com/2013/11/top-stocks-buy-celg-pg-qcom-sndk-tdy-yhoo/view-all/
- Trade of the Day buy list: https://investorplace.com/category/options-trading/trade-of-the-day/
- On Oct. 4: https://investorplace.com/2013/10/trade-of-the-day-celgene-corp-celg/
- On Jan. 9, 2013: https://investorplace.com/2013/01/trade-of-the-day-celgene-corp-nasdaq-celg-4/
- on March 18: https://investorplace.com/2013/03/trade-of-the-day-celgene-corp-nasdaq-celg-6/
- [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif
Source URL: https://investorplace.com/2014/01/trade-day-celgene-celg-2/