Illumina (ILMN) provides "sequencing and array-based solutions for genetic and genomic analysis." Shares of ILMN are under heavy selling pressure Tuesday as traders and investors voted with their feet on the company's disappointing 2023 guidance. Let's see how the charts look.
In this daily bar chart of ILMN, below, I can see that prices suffered a big decline in early 2022 followed by a sideways trend from June. ILMN made a recovery rally into August but the On-Balance-Volume (OBV) line declined throughout the advance telling me that sellers were more aggressive than buyers and the rally was likely to fail.
On Tuesday prices made a new low for the recent move down and the OBV line is close to making a new low too. Prices were off their worst levels of the day but the bears are still in control. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of ILMN, below, I see a bearish picture. Prices are in a longer-term decline and trade below the bearish 40-week moving average line. Bottom reversals and lower shadows have had limited response.
The weekly On-Balance-Volume (OBV) line tells me that sellers of ILMN remain more aggressive than buyers. The weekly MACD oscillator is below the zero line and close to crossing to the downside for a new sell signal.
In this daily Point and Figure chart of ILMN, below, I can see a downside price target in the $153 area.
In this second Point and Figure chart of ILMN, below, I used weekly price data. Here the software projects a target in the $149 area.
Bottom line strategy: There may come a day when ILMN ignores bearish news. Unfortunately it looks like today is not that day. Avoid the long side of ILMN as further declines are possible.
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