Celgene has been weak the last few days after running from 50 to 59. Like SNDK (which I'll update you on after this) CELG is consolidating gains in a little flag pattern. CELG will likely consolidate further until it approaches support. That support is likely to be the middle bollinger band which is currently at 55.53. However that bollinger is rising at the current time making it rising support. So, once CELG approaches it, it will be higher than it currently is.
I think CELG can run up to 60 where it hits it's 52 week high. While CELG would've been a better buy when it came down to touch it's 200 sma, a point that it has consistently bounced off of, it is still now in a position to make money. I believe it's consolidation pattern as you can see on the chart will continue on for 5 days at most before making a move to the upside, making now a good time to look at getting in. I would seriously consider buying an initial position around 56.50 then waiting to see if it'll come and set on it's middle bollinger where it will be even more attractive.
As a follow up to SNDK, the stock came down to a buy point today at 42. It is very possible that the stock will come down to touch it's 50 sma at 41.30. If it does, I would recommend picking up more shares there. Once this consolidation ends, after SNDK has been beaten down a bit (it's down 3 days in a row in the face of a strong market) I'm sure buyers will come back to push the name higher.
That's all for me right now.
CM
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