The USD 139.3 support, currently tested, should allow Celgene to rally.

From fundamental viewpoint, the company is strong. Sales have nearly tripled since 2008 while margins have been improved. Moreover, this momentum is not slowing down. Revenues should progress of 41 % in the two coming years. The company shows an astonishing profitability profile with a 22.3% net margin expected to reach 37.5% in 2015. The financial situation is sound with a positive Cash position standing at USD 1.4 billion at the end of the 2013 fiscal year. Finally, EPS has been gradually revised upward by Thomson-Reuters analysts, 2014 EPS is expected to be 87% higher than 2013 one, reaching USD 6.16.

Technically, the security is in strong long term bullish momentum, but the last consolidation phase as brought back the stock in an interesting entry level. The stock seems being oversold, near to its USD 139.3 support in daily data. This level might stop the short term slumping and the bullish trend could resume anytime soon.

Active investors could take a long position at the current prices. The target will be set at USD 149. A stop order will be placed under the entry points in case of a more important downward movement.