Don't Ignore This Chart!

Exact Sciences Corp Posts Solid Results, Completes Right Side Of Cup

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

On Thursday morning, Exact Sciences Corp (EXAS) was the #1 percentage gainer on the NASDAQ, rising nearly 26%.  While that's a massive move by any measure, I doubt that the move higher in EXAS has ended.  If you look at a weekly chart, you'll see that yesterday's gain in EXAS actually completes (or nearly completes) the right side of a very bullish long-term cup with handle pattern.  Take a look:

Those big gains yesterday simply took EXAS back to where it was in early 2015.  I'd expect to see consolidation over the next several weeks, but ultimately a breakout that carries the stock to 55 based on its measurement.  Make sure the volume confirms on a breakout of its 2015 high.

Quarterly results for EXAS were released Thursday morning and they showed that the company had handily beaten both its revenue and earnings estimates, setting the stage for yesterday's advance.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More