On November 14, we mentioned that Celgene Corporation (Nasdaq:CELG) was trading within a well-formed ascending channel pattern. As you can see from the charts below, the barriers of the pattern have acted as support and resistance several times of the past year and they have also created an interesting trading range. Notice how the bears have recently been able to push the price below the combined support of the 200-day moving average and the lower trendline. This breakdown will be used by traders to suggest that the stock will likely head lower and that the prolonged uptrend is shifting.



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