Let’s get to the biotech charts. Here’s the weekly chart for Celgene. We’re liking the setup of this biotech sector leader right now. Our initial buy point was at 127.10 with further buys coming in on dips over the last 3 weeks.
The huge surge in volume on the breakout week makes this move official. Of note in the chart is the recent moving average cross over with the 21-week crossing above the 50 week moving average. All time highs for CELGENE come in just 6 points higher around the 141 mark. That means little overhead resistance or supply to weigh on the pending move higher.
Our protective Stop loss is on a weekly close below the 126.50 point.
Other biotechs are confirming CELG’s moveare Regerneron (REGN). and Exelixis(symbol EXEL) was was pushing to new highs today on the back of the last 4 quarters seeing close to 500% growth in sales for the molecule therapy drug developer.