Illumina, Inc. : End of the technical recovery
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$53.27 | $0 | $54.1 | +100% |
From a fundamental viewpoint, firstly, we note the high valuation of the company. PER for the current year is at 42.92x and expected at 33.29x for next year. With a valuation ratio of 4.69x, the group appears overvalued compared to its business activity.
Graphically, the stock went through a period of rebound in recent sessions towards the USD 53.8 short-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the USD 50.6 support area which will be a bearish objective.
Due to the technical configuration and a bad fundamental situation which does not justify the current valuation of the group, investors can open a short position close to the USD 53.8 resistance. The price target is set at USD 50.6 and a stop loss will be placed at USD 54.1.