Sunday, November 24, 2013

CELG Celgene Weekly Chart Bull Flag Rising Wedge Negative Divergence

Celgene is a high-flyer this year. From 10 in 2004 to 165 in 2013, +1550%, a near 17-bagger, in 8 to 9 short years. Also, from 60 to 165, +175%, almost a 3-bagger, in the last 18 months. Future Fed Chair Yellen does not see any asset bubbles in markets; everything looks perfectly fine. The bull flag off the bottom in 2004 shows the first leg from 10 to 80, then the sideways to sideways lower consolidation flag, and then the second leg from 40 creates the target at 110 that was easily achieved. Price explodes higher during the ongoing biotech orgy this year. The strong biotech sector is very instrumental in the small cap RUT printing new highs this year.

The red lines show the negative divergence and the pink dots show the price extended well above the moving averages requiring a mean reversion (lower prices). In the near-term, the short green line for the MACD line wants to squeeze out a jog move, down-up-down over the next 1 to 3 weeks and that may very well lock the top in place at, say, 163.3-182.8. The 110-140 range would not be surprising in 2014. Perhaps the biotechs are next to roll over like the tech and other high-flyers recently like TSLA? This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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