Dow Jones soars above 23,000. Is it too stretched? >>> READ MORE

Little Biotech’s Breakdown Signals Selling Will Continue

Genomic Health broke to a new low, penetrating a quadruple-bottom


Genomic Health (GHDX) — This biotech company is focused on the development and commercialization of tests for cancer that allow physicians and patients to make individualized treatment decisions. But estimates indicate a steady decline in gross margins. The consensus earnings per share (EPS) estimates are for a loss of $0.85 in 2014 and a loss of $0.34 in 2015. 

GHDX has been in a bear market since November, and on Friday, it broke to a new low, followed by a fresh MACD sell signal. The break Friday penetrated a quadruple-bottom, and our Profit Scanner service identified this stock as “intermediate-term bearish” and noted a descending continuation triangle with a target of $21 to $21.80. 

Sell GHDX short at $24.50 with a stop-loss at $29. Short selling is a speculative technique that is not suited for all investors. Check with your broker for specific restrictions on GHDX, margin requirements and ability to borrow the stock. And check out our Profit Scanner service.

GHDX ChartChart Key

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC