It Looks Like This Stock is Ready to Go Higher

Celgene Corporation (NASDAQ:CELG) — This biotechnology company, which develops and markets small-molecule drugs for the treatment of cancers and inflammatory diseases, was last reviewed on Sept. 20.

I focused on buying CELG at $107 with a target of $122. It made my target price in November, however, it is gaining technical strength, and I suggest holding this stock or adding it to our readers’ portfolios.

Additionally, on Monday Standard & Poor’s Capital IQ reiterated a “strong buy opinion” on Celgene.

They raised their 12-month target to $150 from $143, raised its 2016 earnings to $5.94 from $5.90, and increased its 2017 EPS estimate to $7.15, an increase of 15 cents.

They appraise Celgene as among the best in the biotech space, and are encouraged by the sales growth of three of its major drugs.

One of the drugs, Otezla, will be shortly launched in Europe and Japan.

Technically, CELG completed a quadruple bottom when in November it gapped from the confluence of its 50- and 200-day moving averages, briefly penetrating the resistance line at $122. It pulled back from the line on profit-taking and formed a bullish “V” formation, leaving in the wake of the gap a confirmed golden cross, the power of which will probably push its price through $122 to a target of $140.

MACD has turned positive, and accumulation is building prior to a probable breakout. Investors may consider CELG as a long-term investment and cornerstone in the biotechnology sector with a target price above S&P’s estimate of $150 in 12 months.

— Sam Collins, Trade of the Day

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Source: Investor Place