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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