SSS - Celgene (CELG) Potential Head & Shoulders Set-Up
The daily chart of Celgene (CELG) shows a small head and shoulders formation with the stock pushing up into its 50-day moving average on below-average volume. Given that the market continues to rally on an oversold bounce from last Monday's lows without a follow-through day, the potential for a rally failure still exists. Should this occur, we might expect CELG to find resistance around current price levels and roll over with the market. A strong push through the 50-day moving average of 3-5% would be your maximum upside stop.
We currently have a short position in CELG, but may be in and out of the stock as market conditions change.
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