CELG finds buyers around 86.37 for the forth day in a row
Celgene Corporation (CELG) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
CELG ended the week 2.94% higher at 87.40 after gaining $0.45 (0.52%) today, outperforming the Nasdaq 100 (-0.3%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CELG as at Jan 11, 2019):
Friday's trading range has been $1.25 (1.45%), that's below the last trading month's daily average range of $2.79. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CELG. Prices continued to consolidate within a tight trading range between 84.50 and 88.43 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on December 31, 2018, CELG gained 3.98% on the following trading day.
Prices are trading close to the key technical resistance level at 87.73 (R1). The stock was bought again around 86.37 after having seen lows at 86.36, 86.65 and 86.48 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 88.43 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 86.36 where further sell stops could get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Celgene. Out of 73 times, CELG closed lower 60.27% of the time on the next trading day after the market condition occurred.