Myriad Genetics, Inc., a molecular diagnostic company, focuses on the development and marketing of predictive, personalized, and prognostic medicine tests in the United States and internationally. The company operates through three segments: Research, Molecular Diagnostics, and Pharmaceutical and Clinical Services.
Take a look at the 1-year chart of Myriad (Nasdaq: MYGN) with the added notations:
MYGN shot higher back in the beginning of the year, but has since traded sideways. You will notice that since March the stock has found support at $32 (blue) whenever that level has been approached. Now the stock is almost there again. Traders should be able to expect some sort of bounce, most likely up to $34 (red), and then $40 (green) if that resistance is broken.
However, if the $32 support were to break, much lower prices should follow.
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The Tale of the Tape: MYGN has a key level of support at $32. A trader could enter a long position at $32, or on a break above $34, with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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
Follow me on Twitter: @cmtstockcoach