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Sequenom, Inc. provides products, services, diagnostic testing, applications, and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural and livestock research. The company operates in two segments, Molecular Diagnostics and Genetic Analysis. The Molecular Diagnostics segment researches, develops, and commercializes noninvasive molecular diagnostic tests for prenatal genetic disorders and diseases, women’s health related disorders and diseases, ophthalmology, oncology, infectious diseases, and autoimmunity. The Genetic Analysis segment designs and markets MassARRAY system, a nucleic acid analysis platform that comprises hardware, software applications, consumable chips, and reagents to measure genetic target material and variations.
To review Sequenom’s stock, please take a look at the 1-year chart of SQNM (Sequenom, Inc.) below with my added notations:
For the last (2) months SQNM has been consolidating within a common price pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For SQNM, the rectangle pattern has formed a $4.70 resistance level (red) and a $4 support level (blue).
The Tale of the Tape: SQNM has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $4, or on a breakout above $4.70. The short opportunities on SQNM would be on a break below $4 or on a rally back up to $4.70.
Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT