Buy CELG on a Pullback or a Breakout

Biotech stock Celgene appears to be breaking from a broad top

Celgene Corp. (NASDAQ:CELG) — 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.

Trade of the Day – Celgene Corp. (NASDAQ:CELG)

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