Why This Healthcare Giant Looks Ready For A Nosedive
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In a market that seemingly won’t be stopped on its way higher, we managed to find a bearish play. Illumina (ILMN) has been bouncing along a support level of around 180 for quite some time before breaking below it very briefly.
This trade is another very straight forward one. If price was to break below this level and remain there, then lower prices would be expected in the very near term. Another bit of bad news for the stock is the healthcare sector has been underperforming the market, as you would expect during a rally driven mostly by tech.
For those who have been keeping an eye on healthcare for short plays to make counter to the movement of the market lately, this could be your best bet. However, price action around these major levels will give you the go or no go when looking to put this trade on. If price bounces, that could give you a better entry, but you would still want to see sellers step in and squash that move if it does happen.
If price looks considerably weak around this level, you would enter on a close below 180 and your stop just above that. Give this trade a look and add it to your watchlist for this week as we move on to the second half of the trading week.
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