Illumina Inc. (ILMN) has pulled back slightly this month. We looked at the charts and indicators at the end of May and I wrote that "ILMN is dipping slightly today and might see a retracement to around $250 or so but with no signs of significant distribution (read selling) ILMN could well outperform on a relative and absolute basis over the next several months." ILMN stopped short of our $250 buy level and then rallied to new highs. I take it as a sign of strength when a stock acts stronger than anticipated. Let's review the latest charts of ILMN to see if it is still a name to buy.
In this daily bar chart of ILMN, below, we can see that prices are in an uptrend above the rising 50-day and the bullish 200-day moving average lines. The On-Balance-Volume (OBV) line has been moving higher the past twelve months telling us that buyers of ILMN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator just turned down to a take profits sell signal but remains above the zero line.
In this weekly bar chart of ILMN, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is positive as is the MACD oscillator.
In this Point and Figure chart of ILMN, below, we can see the prices have dipped back to nearby support around $271-$263. A longer-term potential price target of $343 is shown.
Bottom line: ILMN has pulled back this month and I would view it as another buying opportunity. Risk below $250 and look for gains to $300 and then perhaps the $340 area.