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.
About the author:Tom Bowley is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas.