Can CELG Clear Key Resistance?

 | Feb 21, 2014 | 9:00 AM EST  | Comments
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With the biotechs screaming to the upside lately, I thought it was worth going over trading parameters in Celgene (CELG) again.

Regeneron (REGN) and Biogen Idec (BIIB) have met key upside targets recently, but CELG, on the other hand, still has a higher target via the weekly chart that comes in at the $181.96 area.

 

Celgene (CELG) -- Weekly Chart
Source: Dynamic Trader

 

I will continue to watch for this target as long as price continues to hold above the February lows. Let's take a look at the daily chart next.

 

Celgene (CELG) -- Daily Chart
Source: Dynamic Trader

 

On the daily chart, I have two areas of support I'm watching for a possible resumption of the rally to start from. The first area comes in at $159.81-160.68. The lower support decision comes in at $153.84-155.22.

So far we are holding above the higher support decision. If we continue to hold above here, the next upside target on the daily chart comes in at $168.91-169.48. The bigger-picture target remains at the $181 handle.

Let's break this down even further by using a 30-minute chart. 

 

Celgene (CELG) -- 30-Minute Chart
Source: Dynamic Trader

 

Looking at the 30-minute chart, you can see the symmetry projection (measured move) we are currently holding above at the $160.68 area. We have seen a minor rally off this zone, but what do we really need to see to consider that the rally will continue in earnest?

First, look at the chart labels that show the measurement of the prior swings.  The first was $3.26, the second was $3.22 and the most recent rally swing has lasted $3.19. What I need to see to feel more confident of a continued rally is a rally that is a decent margin beyond $3.26. Let's look at it this way. If we can clear the resistance illustrated on this chart at the $163.82-164.08 area, followed by taking out the $164.79 swing high, I think we will be in the position for CELG to accelerate it's move to the upside towards the targets discussed. A break below $159.86, instead, would get me to back off the buy side until the next setup triggers another entry for me.

Let's see if we can clear this key resistance or not. C'mon CELG!

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