CBST - Cubist Pharmaceuticals

Much stronger than the market-average. In the first round of the panic (August) CBST broke down from a head and shoulders pattern and although it had 3 weak sessions, it bounced back quickly. It showed some definite bullish signals in this sharp correction:

• The price reached the edge of the huge gap (from April) and it turned back up without the fill of it.
• It was close to the 200-day moving average, but the long-term bull remained intact.
• Meanwhile the main indices hit new lows in September, CBST produced higher highs and higher lows.

Now we can see a reversed head and shoulders pattern on the chart from June and the price is sticking to the neckline. Look the trendline from March! It pushes the price up, and the area lessens in this base for further sideway movement.
If CBST turns down from the resistance, the 34-34.5 support zone (strengthened by the 50-day MA) will likely hold it. Although there is enough space above the trendline and below the resistance for some weeks, but if it wants to be/remain one of the leaders in this market-upwave, then it should break out soon. Above 38, there are no resistances. Counted from the fibo-lines and the extent of the pattern, i think that 43.5, 47 or even 50 would be reachable in some weeks (after the breakout).
The perspective becomes neutral below the trendline and bearish below the local minimums around 31 (and 200-day MA).