Schaeffer's Top Stock Picks for '25

Technical Trouble Haunts This Medtech Name

The equity is coming off a brief rally

Digital Content Manager
Oct 6, 2022 at 12:20 PM
facebook X logo linkedin


The shares of Illumina, Inc. (NASDAQ:ILMN) got a kick from this week's broad-market rally, surging 9.5% on Tuesday to mark its biggest one-day jump since January. The stock looks to be erasing some of these gains during today's trading, last seen down 2.5% at $212.91, and things could get even worse for the medtech concern, as this week's positive price action put the security back near a historically bearish trendline. 

The trendline in question, ILMN's 120-day moving average, has only been toppled twice on a daily closing basis since September 2021. Looking back three years, there have been five other instances when the stock came within one standard deviation of this trendline, according to data from Schaeffer's Senior Quantitative Analyst Rocky White. One month later, the shares were negative 60% of the time -- including the two most recent -- averaging a 2.5% drop. A similar move from its current perch could put the security back near the $207 mark. 

ilmn oct 6

Analysts, meanwhile, are split on the equity. Of the 11 in coverage, five say "strong buy," and six say "hold" or worse. On the other hand, short interest is starting to rise, up 24.8% in the last two reporting periods, though the 4.37 million shares sold short make up a just 2.8% of the stock's available float. 

Options traders have been incredibly bullish, though. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ILMN sports a 50-day put/call volume ratio of 3.88, which stands higher than 80% of readings from the past year. In other words, options players are pricing in relatively low volatility expectations at the moment. 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));