This first chart of CELG, above, shows the sideways trading range largely confined to $110 on the downside and $130 on the upside. In July and August, CELG traded over $130. At the end of September, and briefly in August and May, prices did probe the $110 floor. Prices have crisscrossed the 50-day simple moving average and the On-Balance-Volume (OBV) line is not displaying a sustained trend or serious divergence.
Sometimes a longer-term frame chart gives us clues substantially different than the short-term view, but that is not the case with the chart, above. Here we look at CELG with a flat 40-week moving average, a neutral OBV line and the Moving Average Convergence Divergence oscillator narrowing to another possible buy signal. Will CELG continue to trade sideways? Maybe, but a breakout will happen eventually. For now we think you should keep your options open.