[ILMN] Case of DNA Sequencing Blowing Up

Company of attention is Illumina, a San Diego enigma pioneering on the fast DNA sequencing "shotgun" method that revolutionized the world. Some argued they single-handedly change the course of the Human Genome Project and shorten the time needed in years if not decades.

Anyway enough of that. They are under enormous pressure recently. First is the delay of approval at the FDA, second is the revising of earning target at the recent earning call. Are they doomed?

Here is our Technical Speculator look of it:

Fib series show that today it hits multi month support level. RSI shows that it is at extreme over sold territories. Without better news soon it would tank further to around $85-90 range before stopping the bleed. And that, largely depends on the marco environment.

I just entered a position in it regardless, as I have followed this for long and waiting for a LONG position for a while already. This is an attractive price, though may not be in the short term. When it go down to $90 range we will double our holding and stay there.

Disclaimer: the author of this article holds shares in this equity and prepare to buy more in the next 60 days.