Illumina (ILMN) is a biotech stock that makes tools and analytical systems used in the study of genetic variations, such as sequencing platforms and assay kits. Shares have traded in a narrow range the past two weeks after rising $20 from mid-March to early May — and now appear ready to head higher again. Though as we all know, correlation isn’t causation, June has historically been an outstanding period for the shares. Earnings are expected around July 22.
Click to EnlargeThe stock is looking great as it pulls into its 20-day average. I suspect it may have a few more days to spend going sideways before it spikes up to my target.
Recommendation: Buy ILMN under $71 for a $76 target.
InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage, which aims to capture profits of 15% to 40% and often as much at 100% to 200% in less than 90 days.
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