Takeover stories and rumors have been the stock-in-trade of Wall Street ever since people could wink and nod. Merger-and-acquisition deals are akin to crack (not that I personally know anything about it). You come into the office and turn on your computer and BAM!, you get the news of a bid 10% to 20% to 30% above last night's close.
You were already long and you are hooked. Move over Gordon Gekko.
There seems to be some conjecture about shares of Clovis Oncology (CLVS) . Understand that I know nothing. Repeat, I know nothing. But let's look at the charts to see what we might glean.

In this daily chart of CLVS, above, I can see a shallow saucer bottom that has been traced out since January. This slow recovery comes after a huge downside gap. Move your eyes to the action in August and September. CLVS has rallied above the now-rising 50-day simple moving average line and the slower-to-react 200-day average. It looks like the 50-day average is going to cross above the 200-day average for a bullish golden cross.
The On-Balance-Volume (OBV) line has been moving up from a May low and has accelerated the past month. A sharply rising OBV line is a sign of aggressive buying. The trend-following Moving Average Convergence Divergence (MACD) oscillator is rising above the zero line, telling us the trend of CLVS is positive.
This three-year weekly chart of CLVS, above, shows the big, dramatic-looking downside gap. Ouch! It has taken months, but prices have made a base and the indicators are improving on this time frame, too. Prices are above the flat 40-week moving average line. The weekly OBV line has just blasted off with a straight-up move, telling us that prices and volume are going up without a dip. The MACD oscillator is almost back to the zero line for a go-long buy signal.
What do we know? CLVS is in an uptrend. If you purchase CLVS, I would recommend a sell stop below $34 for now.