Celgene Presents a Clear Bullish Setup

 | Aug 21, 2013 | 10:00 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


I have a well-defined bullish setup in Celgene (CELG) that we are going to look at today. The larger pattern is a bullish pattern of higher highs and lows. I also see price above both the 200- and 50-day simple moving averages, and that supports a buy-side setup.

Beyond this, the trade setup is what I like to call a Fibonacci price cluster, which is the coincidence of at least three key Fibonacci price relationships that come together within a relatively tight range. What I also like about this setup is that two of the projections within the cluster are what I call "symmetry" projections. These are essentially measured moves of prior corrective declines within the larger uptrend in Celgene. The zone we are currently testing and holding comes in at the $128.63-$132.10 area. The recent low was made on Aug. 15 at $132.75.

There is one more element to this trade setup. This is where I also apply the same Fibonacci ratios that I apply to the time axis of the market. You can see a cluster of time cycles illustrated on the daily chart below that identified Aug. 14-16 (give or take a day) as a time window for a possible low in Celgene to develop.


CELG Daily


So now that price and time parameters have come together on the daily chart, I have seen my initial buy triggers in this one. My risk is defined below the low end of this zone at the $128.63 area. My potential upside target at this point comes in at $154.92. If the trade does start to play out in my favor, I will move to a break-even stop and then trail it up. If the key support cluster is violated instead, I will stop myself out and ditch the trade.

Columnist Conversations

View Chart »  View in New Window »
View Chart »  View in New Window »



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.