Celgene is one of the most volatile biotech names out there, and as we can see has been on a rollercoaster ride since peaking in early August. The stock got pound in early Fall when it appeared Hillary Clinton might win, and potentially put out weaker pricing policies for biotechs like Celgene. That may have been a buying chance as the stock was nearly cut by 20%, the stock has moved sharply higher since earnings were released.
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What we find attractive here is the gap n’ hold pattern, Monday another one has been holding steady. Resistance is just ahead around 110 level and it may pull back some from there, but there is a strong MACD buy signal confirmed. Momentum is very good here in this name and relative strength has improved greatly. We could see a move back to the August highs very soon, any pullback would be a buying chance.
