Top Trade Ideas for the Week of March 12, 2012: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Celgene, Ticker: $CELG

Celgene, $CELG, is moving higher to test resistance 75.80 after finding support at the 50 day Simple Moving Average (SMA) at 72, also previous support. There is a loose channel between 71.40 and 75.80 that has been an area of consolidation for 2 months. A move above this channel triggers a Measured Move to 80.20. The Relative Strength Index (RSI) is bullish and rising and the Moving Average Convergence Divergence (MACD) indicator is heading towards a positive cross. Both support further upside. Support lower comes at 69.30 and 67.

Trade Idea 1: Buy the stock on a move over 75.80 using a $1.50 trailing stop.

Trade Idea 2: Buy the April 77.50 Calls on a move over 75.80 using a $1.50 trailing stop on the stock.
These were offered at 1.06 late Friday.

Trade Idea 3: Sell the April 72.50 Puts on a move over 75.80.
These were bid at 1.11 late Friday.

Trade Idea 4: Buy the April 77.50/72.50 Bull Risk Reversal on a move over 75.80.
Combining trades 2 and 3 this trade could have been put on for a 5 cent credit late Friday.

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