Don't Ignore This Chart!

Illumina Makes a Bid to End its Correction


Biotech stocks are leading the market with the Biotech iShares (IBB) and Biotech SPDR (XBI) hitting 52-week highs this week. Even though Illumina (ILMN) is lagging its benchmarks a bit, it is firming at support and could be poised to end its correction. The chart shows ILMN advancing from 120 to 190 and forging a massive gap in January. A stock is entitled to a rest or correction after such a move and I view the decline back to the 165-170 area as a correction within a bigger uptrend. Notice that broken resistance turned into support in this area as the stock bounced in mid June and firmed here in July. A breakout at 176 would suggest that the correction is ending and the bigger uptrend is resuming. The indicator window shows MACD edging higher for the third time in three months momentum attempts another upturn.  Note that ILMN reports earnings on August 1st. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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