Celgene, Fitbit & Starbucks

Another handful of monthly stock charts to check out. This group of charts includes Celgene, Fitbit & Starbucks. Why did I group these stocks together? Well, I figured that if you are drinking too much SBUX and not monitoring your FIT, you may end up using CELG.

OK, I wasn’t really thinking that but it does sort of flow….

CELG – Celgene

After catching up with Friday’s show of Fast Money, I heard that Hillary is at it again with tweets and drug prices. Do these tweets mean anything? Her tweet last year sent the IBB index down 5% in a day.

CELG’s share price is right on the bottom of an expanded Trading Channel. A break of the channel, which appears likely, will most likely send CELG’s share price back into my preferred purchase area and probably also re-test the support area from the Doji Candlestick Pattern.

Analyzing the Downside Risk From CELG’s Current Share Prices Using a Fibonacci Extension Tool

In one of my upcoming articles I am going to examine the IBB index rather than individual stocks and see if a better understanding of the sector can be gained. Stay tuned for that article.

CELG’s share price has been in a grind-it-out, wear-you-down consolidation for several months now. I do not think it is over either and could see up to 5 more months of the same grind-it-out gradual downtrend. That’s the reason for the review of the IBB index. Do not be in a hurry to try to catch the bottom if you are swing trading.

Here is what that possible 5 month consolidation could look like:

CELG Worst Case Scenario 5 Month Continued Correction Period

Remember my previous article for CELG where I talked about a possible $80 buy-in opportunity? This wave pattern would lead to a $70 price target, a little more that 10% less than my previous calculation. Any opportunity to purchase shares of CELG in the $70 – $80 range sure sound good, but that would also seem to indicate that the entire sector could be under pressure again. Thanks Hillary.

But with a decreasing MACD Histogram, a drop to the $70 range doesn’t really make sense. Check back soon for the IBB article so we can look at the sector as a whole first, and then see how that may apply to the stocks making up the sector.

FIT – Fitbit

I started writing about Fitbit (FIT) soon after its IPO. But being a chartist and having no chart history didn’t exactly work out too well as FIT’s share price has been under pressure ever since then.

The company has a little over 1 year of charting history to analyze now. I placed a Fibonacci Retracement Tool on FITs downtrend to calculate one potential upside target based on the 2 Piercing Candlestick Patterns (bullish reversal candlestick patterns) noted in the last 6 months.

Piercing Candlestick Patterns on Fitbit’s Monthly Candlestick Chart Suggest a Potential Bottoming Area

Use the 38.2% Retracement Line to calculate a minimum upside target price. The length of time for that minimum trade to take place is the variable right now though. What if it takes a year? Two years? Would you be happy if you doubled you money in two years on an investment? I know I would as that would equate to almost 50% per year.

Think of JCP and AMD – these are both stocks that I calculated a minimum trade on but both took over a year before their share prices made their moves. Yet, both have now made significant gains from their potential bottoms.

FIT also fits the tech sector play, one of the sectors that I expect to outperform leading up to the potential end of the bull market.

Trendy Stock Charts Trading Tip

SBUX – Starbucks

The MACD Histogram on this 5 year monthly candlestick chart continues to show increasing selling momentum; this should lead to lower share prices for SBUX in the short-term. My previous article for SBUX stated a possible September 2016 buy-in opportunity – before that opportunity presents itself though, look for the selling momentum on the MACD to slow down. It is still increasing.

Analyzing SBUX’s Pullback Looking For Strong Support Around Its Main Supporting Trendline

My September buy-in may be a little early. This needs monitoring. Get an update at any time in the Idea Chamber – just ask for one!

Summary – Celgene, Fitbit & Starbucks

After analyzing the charts for Celgene, Fitbit & Starbucks, I do not see a common theme in the analysis. CELG continues to show a probability of further consolidation. FIT may have found a bottom and its minimum trade possibility could lead to a double. SBUX is showing further price declines by a MACD Histogram that reflects increasing selling momentum.

The one thing I guess the above analysis does seem to confirm is volatility. Some stocks are going up, others are going down. Being in the right stocks as this crucial juncture in the market has never been more important.

Do you have any specific stock requests? Stop by the Idea Chamber and leave the ticker symbol for your request!