Bluebird has been a strong performer over the past year, which is now testing support. It probed its rising trendline
support yesterday, and today dropped below that and tested its 100-day SMA
. It seems that valuation concerns are the reason that the selling got underway a couple of days ago. But I haven't read anything negative about the strength of their pipeline. I do agree that a $10B market cap is a lot for a pre-revenue biotech. But there are some very large indications getting addressed by BLUE (sickle-cell disease and myeloma, just to name two). I am not sure what to make of the CELG
partnership, now that CELG
has bought BLUE competitor JUNO. But all in all, I do like BLUE for a bounce after 7 days of selling. If it's green tomorrow, I would favor a long entry.