Hey guys, I just was tipped off to the rise of this stock and was asked to take a quick peak at the technicals to see if it's still a good time to add shares. The truth is that the price has now bumped against the upper trendline resistance twice and Thursday it did as well. In fact, on Thursday CELG bounced off the lower trendline where there were people anxious to take part in the rally and in the same day hit it's head where people were looking to sell out. These two lines are near the converging point, so if you are long, be careful of breaking below. If you are short, you may need to cover if it breaks high. Although, it's worth looking at the momentum indicators which are overbought and showing bearish divergence (going in the opposite direction of price) which typically means a correction is in the cards. The OBV is following the price trend so it is possible for an upward breakout, but I would be cautiously optimistic with that scenario. It is important to keep the key support and resistance trendlines in perspective and let a break in any of those help you choose what to do. I've put the chart and analysis on Stockineer, but I wanted to share the summary here for you guys. Long or short, good luck and have a nice holiday weekend.
Since my first post almost a month ago we've been monitoring the technicals and CELG has been a HOLD until today. Anything can happen with earnings coming up, but as of today, CELG became a sell according to the charts. Not only did the price break the lower trendline, but a topping pattern...in this case, a double top has been confirmed. This, coupled with all the bearish divergence on the momentum indicators looks very negative. The height of the pattern is $10, which predicts price moves in the same increment with the first target being $108 and the next $98, etc. You can see there's obvious support at each of these levels giving further confidence to these moves.
I've put the updated chart and discussion on Stockineer, but I wanted to give you guys the heads up, as I did before. If you are long, my advice would be to collect profits because shorts will likely be entering the scene. Good luck guys....longs have done very well so it's worth being cautious....earnings could change the tide though. That wildcard is anyone's guess.
Haha, no sir, but I would if I thought they'd tell me something. Take a look at the 6-month chart and you'll see the price resting on trendline support...very steep support which is really too steep to maintain anyway so a break should really come as no surprise. Take a look at the 2-Year and you'll see the resistance. I don't concurr that any trend reversal has been confirmed. The current trend must be assumed intact unless shown otherwise...even with a break of the support it could just trade in a consolidation pattern. My full disclosure is that I have no skin in this game, I just had a reader request for this stock so I took a look at the technicals for him and sharing with this board. I hope support holds and you guys continue cashing in.
The price has come down to test the trendline....be careful of a break below because it could be hard to swallow. Nothing has broken yet so wait for it because there are two levels of support directly below which are very close....but not much support below those. Good luck guys.