Veracyte Inc (NASDAQ: VCYT)

Veracyte, Inc. operates as a genomic diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas solutions for a complex landscape in thyroid nodule diagnosis to physicians; Percepta Bronchial Genomic Classifier solution for use in lung cancer diagnosis; and Envisia Genomic Classifier solution for the diagnosis of idiopathic pulmonary fibrosis. It sells its products through product specialists, account managers, and medical science specialists.

Take a look at the 1-year chart of Veracyte (NASDAQ: VCYT) with the added notations:

VCYT has formed a major level of support at $22 (green) during the past several months. The stock has come back down to that level again, and traders could be expecting some sort of a bounce. However, if the $22 support level were to break, lower prices should follow for VCYT.

The Tale of the Tape: VCYT has key support at $22. A trader could enter a long position at or around $22 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!

Good luck!
Christian Tharp, CMT