Since the beginning of 2015, Celgene (CELG) had been stuck in a sideways channel until late last week, when it bolted higher on strong turnover.
The Friday volume is likely due to options expiring. But nevertheless, we have recently had good strong buying, indicating institutional accumulation. Friday's breakout was a confirmation of Thursday's move and we still have more upside potential.
The relative strength is impressive. The stock has made a nice move from the lower end of the channel (about 10%), but may be in need of a rest. A pullback to fill last week's gap at $125 or so would be ideal.
Isis Pharma (ISIS) is one of my favorite names for 2015 (I did a LEAPS webinar in January and this was on my buy list). ISIS had a sharp pullback in early February but just re-captured those old highs set in early January.
The chart is constructive here, as resistance was penetrated, but then rejected at higher levels. It appears a consolidation is in order as the RSI stalled at 70 (see chart). A modest pullback toward $68-$70 would be an area to consider buying.
A longtime holding in our Trifecta Stocks service, CVS Health (CVS) is one of those go-to names that has a very steady and consistent technical pattern.
It's a stock you buy on dips and, since bottoming last October, there have been at least eight occasions to do that. Currently, we see the stock just moving sideways, taking a breather after the monster run since last fall.
Volume has picked up this month, as you can see from the chart, but the momentum indicators have started to slow down. Given the run it's had, that is no surprise. But if a dip should occur again, we know what to do with it.