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. 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 Glembatumumab vedotin (CDX-011) is a targeted antibody-drug conjugate in a randomized study for the treatment of triple negative breast cancer.
Take a look at the 1-year chart of Celldex (Nasdaq: CLDX) with the added notations:
After sliding lower from February into May, CLDX finally found it’s footing and started a sideways move. Over that time the stock has hit a key resistance level at around $18 (blue) multiple times. Two weeks ago CLDX finally broke out above that important $18 level and now appears to be pulling back to it.
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The Tale of the Tape: CLDX had a key level of resistance at $18 that should now act as support on any pullbacks. A long trade could be entered on a pullback to $18 with a stop placed below that level. A break back below $18 could negate the forecast for a move higher.
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!
Christian Tharp, CMT
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