CELG, a stock I've recommended on here before, has been coming down as of late and is looking like it will be a buy very shortly. As you can see in the chart, CELG has been cylcling up and down in a steady uptrend. It has continually found support at the 200 sma. I believe that the stock's current situation is no different. The stock has come down off its highs and has been poking around, getting closer and closer to that 200 sma.
Once we see that drop to the 200 sma which will likely be a very short one, I'm sure you'll see a frenzy of buying as people realize that this consistant performer is once again on sale. For that reason, I am recommending a purchase of Celgene shares at the price of 55.75.
Another feature of this trade is that it has a well defined exit point. The 200 sma, the moving average we are betting that the stock will hold, will be basically right underneath the stock at purchase. If this is broken, we know quickly that we were wrong, all bets are off, and we stop out.
As a bit of an update to my recent posts about F, I believe that the stock is now a buy. Furthermore if it comes down to its breakout point at 9.02ish, then buy more.
That's all for now.
CM
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