We are at a crossroads in CELG. The last buy side trade setup on the daily chart came in with a Fibonacci price cluster zone at the 108.25-110.96 area. Now CELG faces an important hurdle on the way up. If this hurdle can be cleared, 137.61 is the 1st major upside target off the 6/24 low. Note that the HURDLE I’ve illustrated on the daily chart comes in at the 120.68-122.48 area.
What do we do with this information? It all depends on the time frame you are trading and your position!. Well if you are long this stock, you may want to trail up stops just in case price does not clear this key zone. There are others who might even use this zone for a short sale since the risk is clearly defined.
For those who are inclined to sell against this area, please wait for a sell trigger and then define your risk either above the cluster zone or the high made prior to a sell trigger. To be honest with you, I don’t know whether or not we will clear this area and head to a new high. Since I think the last low in the S&P is key and has more potential I LEAN towards this zone eventually being cleared, but remember….you can NOT trade an opinion. You can trade a setup though! If you are currently long, at least use this zone to help make a decision in managing your current trade!!