Five Star Biotech Stock Watch: Illumina
Most biotech stocks can move rapidly, and that’s one of the reasons why a lot of traders like them.
Yes, the stocks can certainly be volatile, but when the gains come, they tend to come in bunches.
The trick can be knowing how to identify when one of those “bunches” may be coming.
A biotech stock that may be triggering a run on Wednesday is Illumina.
The company: Illumina, Inc.
Ticker Symbol: (NASDAQ: ILMN)
Illumina develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and function in North America, Europe, Latin America, the Asia-Pacific, the Middle East and South Africa.
The company’s products include sequencing platforms that are based on its technology are designed to meet the various demands of a range of sequencing applications; array platforms consist of HiScan and iScan systems that are array scanners, which support the imaging of array-based genetic analysis products.
Take a look at the nine-month chart of Illumina with added notations:
Illumina settled down into a nice support level at $130.00 during the month of April and started a rally from there.
Over the last week or so, the stock has now been stalling at the same $160.00 resistance level that it hit back in April on two separate occasions.
Today, it would seem that Illumina is making a break for it.
A hold above $160.00 should not only mean higher prices for the stock, but it could also mean a run back to the $180.00 high from back in February and March.
The stock is currently trading at $161.87.
Illumina isn't set to release earnings again until next month.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.
Capital preservation is always key.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.