Don't Ignore This Chart!

Celgene Holds Breakout Zone and Turns Up


Celgene (CELG) is a large biotech stock that is part of the Biotech iShares (IBB) and the Biotech SPDR (XBI). Overall, I would suggest that the long-term trend is up because the stock hit a 52-week high in mid-March and the 50-day EMA is above the rising 200-day EMA. The stock also broke out with a gap-surge in November and this breakout zone held (blue area). Also notice that a rising channel of sorts is taking shape since December. 

The stock caught my eye recently because it found support around 115 twice in late May and broke above short-term resistance. This means a higher low formed in May and the rising channel uptrend is resuming. The initial target would be towards the upper trend line. The indicator window shows MACD moving above its signal line in early June and nearing the zero line. A cross above the zero line would mean that the 12-day EMA moved above the 26-day EMA. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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