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CELG to Break Triple Digits

Celgene has flashed two buy signals in the past week


Celgene Corp. (NASDAQ:CELG) – This company is considered by S&P to have the “brightest growth prospects among large-cap biotech companies.” Its impressive performance was led by its cancer products Revlimid and Vidaza. The company also has a number of other products in the pipeline awaiting FDA approval and is considered by many analysts to be a leader in anti-cancer treatments.

Earnings for 2011 met estimates of $3.43, and S&P estimates earnings of $4.44 in 2012, and $5.11 in 2013. Gross margins are expected to maintain 93%. And Street analysts predict a fundamental price target of $93 within 12 months.

The Trade of the Day first recommended CELG on July 29, 2011, at $60, and then again on Oct. 13, at $65.

Technically CELG broke from a compound top on Sept. 20 on heavy volume, and then again from a double-top at $69. These breaks are called “step-up patterns” and mostly occur on stocks in an aggressive bull market.

A bullish signal from our internal indicator, the Collins-Bollinger Reversal (CBR) occurred on Jan. 27, 2012, and a new stochastic buy was flashed yesterday.

The technical target for CELG is $80 within 30 days and $100-plus longer term.

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

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