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Celgene Corporation Message Board

  • rob_cos rob_cos Dec 9, 2012 4:50 PM Flag

    IBD - CELG sketching rt side of base - setting up fro entry at $81.34 from sound consolidation

    IBD 50: Analyzing IBD's Latest Elite Stocks List -- "sketching right side of a new base - CELG setting up for entry at $81.34 for a breakout from sound consolidation"

    Inside The 50
    IBD 50: Analyzing IBD's Latest Elite Stocks List
    By Victor Reklaitis, Investor's Business Daily
    Posted 12/07/2012 06:35 PM ET
    The current market uptrend, confirmed by a follow-through day two weeks ago, hasn't exactly set the world on fire.

    Even so, the main indexes are holding well above their Nov. 16 lows. The indexes have picked up distribution days, but not enough to force a downgrade to IBD's market outlook.

    IBD-style investors should be looking for highly rated stocks that are sketching and then breaking out from sound, early-stage consolidations.

    The latest IBD 50 offers quite a few stocks that are doing exactly that, along with some stocks that are already well extended after breakouts.

    NeuStar (NSR) has formed a cup-like base with a buy point at 41.41. The telecom company, featured in a mini article on this page, has shown acceleration in its quarterly EPS gains — an excellent trait.

    Catamaran (CTRX) has been consolidating for several weeks in the vicinity of its 10-week moving average. The company manages pharmacy benefits and provides IT services.

    Novo Nordisk (NVO) has climbed back above its 10-week line as it works on a new base. Note that the Danish drugmaker is a relatively steady stock, as you would expect with a big-cap name that's getting close to mega-cap status.

    Yet another medical stock, Celgene (CELG), is showing a possible entry at 81.34 as it sketches the right side of a new base.

    Keep in mind that some of the basing stocks in the IBD 50 are working on riskier, late-stage patterns. That means they've already enjoyed strong advances and haven't reset their base counts.

    Some leading stocks can keep running up, even from late-stage structures, but generally IBD's research has found that you're better off focusing on stocks etching first- or second-stage patterns.

    Take SolarWinds (SWI), for example. You could interpret the software maker's latest base as a fourth-stage structure.

    There's also Lululemon Athletica (LULU), the seller of yoga-inspired athletic clothing. Lululemon showed strength this week, helped by its upbeat quarterly earnings report, it's most recent base could be seen as a fifth-stage pattern.

    For the week, the IBD 50 index fell 1.1%.

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