Buy or Sell Celgene?
This past May, I was watching the weekly "symmetry," or 100% projections of prior declines in Celgene (CELG). These are illustrated in blue in the weekly chart below. These projections are also called measured moves by other market technicians. Initially we did see a tradable low in this stock, though it was short lived after some nasty fundamental news knocked it down to new lows instead. That gap hurt, but let's take a look at what has been happening since then, and recently, to see if we might have another trading opportunity.
Recapping what has happened on the weekly chart, instead of holding above what I felt was the more ideal support, it ended up putting in a low on top of the coincidence of two basic retracement levels at $58.53 on June 21. Since that was not really a good trade setup for me, I had to wait for a shift in the bearish pattern on the daily chart to consider CELG on the buy side again. What the weekly chart does show, however, is the upside potential at the $86.37 area -- IF it gets the full move off the June lows....297 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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