Celgene - Time for the Bulls?

Published on Wednesday, 08 February 2012 04:51 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Celgene Corporation (NASDAQ:CELG) ended the trading session lower by $0.12 or -0.16% from its previous close. Celgene's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the the price action for confirmation.

Celgene Corporation (NASDAQ:CELG) is a global biopharmaceutical company. The Company focuses on the development, and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases.

Traders looking for an entry in Celgene can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders are always looking for tweezer bottoms as they give an entry with a small risk defined, they are a leading indicator that provides an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of Tweezer Bottom reversal patterns: