Celgene Corporation discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases worldwide. It markets REVLIMID, ABRAXANE, and POMALYST/IMNOVID. The company’s products also include VIDAZA, a pyrimidine nucleoside analog to treat intermediate-2 and high-risk MDS, and chronic myelomonocytic leukemia, as well as acute myeloid leukemia (AML); THALOMID for the patients with multiple myeloma and erythema nodosum leprosum; ISTODAX to treat cutaneous and peripheral T-cell lymphoma; and FOCALIN, FOCALIN XR, and RITALIN products.
Take a look at the 1-year chart of Celgene (NASDAQ: CELG) below with the added notations:
CELG popped higher back in November, but hasn’t made much progress since. As the stock has been chopping up and down, it has been finding support at the $115 level (blue), which was also resistance for a little while back in early December. The stock is currently trying to hold that $115 support now.
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The Tale of the Tape: CELG has a key level at $115. Traders could enter a long position on a pullback to $115, with a stop placed under that level. Traders that are bearish on the stock could enter a short position on a break below that level instead.
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
Follow me on Twitter: @cmtstockcoach