Celldex Therapeutics, Inc. (NASDAQ: CLDX)

Celldex Therapeutics, Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States. The company has a pipeline of drug candidates in development for the treatment of cancer and other difficult-to-treat diseases based on its antibody focused precision targeted immunotherapy platform. Its lead drug candidates include rindopepimut (CDX-110), a targeted immunotherapeutic in a pivotal Phase III study for the treatment of front-line glioblastoma and a Phase II study for the treatment of recurrent glioblastoma; and CDX-011, an antibody-drug conjugate, which completed a randomized Phase IIb study for the treatment of advanced breast cancer.

To review Celldex’s stock, please take a look at the 1-year chart of CLDX (Celldex Therapeutics, Inc.) below with my added notations:

1-year chart of CLDX (Celldex Therapeutics, Inc.)

Over the last year CLDX has consistently moved higher. Since August the stock has formed a trendline of support (blue) that it has been bouncing on top of. Always remember that any (2) points can start a trendline, but it’s the 3rd test and beyond that confirm its importance. CLDX’s trendline seems to be very important now that it has been tested 5 times dating back to August.

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The Tale of the Tape: CLDX has created a trendline of support over the last 7 months. A long position could be entered on a pullback to that trend line, which is currently sitting right around $23-24, with a stop placed below that level. A short position could be entered if CLDX were to break the trend line support.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach