$EXAS Exact Sciences #trading #markets

This article originally appeared on 1/9 on our premium site http://www.ttptrading.com The stock is down over 20% since then and hit the swing target price today.

OVERVIEW: On Monday Exact Sciences, the makers of Cologaurd, a non-invasive test for colon cancer screening released preliminary fourth quarter sales forecast. Although the forecast was positive with most numbers at the high end analyst expectations, the stock sold off hard losing nearly 14% for the day. This selling marked the highest down volume day the stock has seen since early June of 2017. The stock started a tremendous run of the lows set in March of 2016 near $5.00 a share. The run in the stock continued until November 8th of 2017 when the stock marked its all-time high moving up to $63.60 intraday before reversing to close unchanged for the day. The stock has since gone into a correction that has seen its shares trade down to just below the $50 level in early December catching support at the prior breakout level and 23% Fibonacci retracement area. Today the stock revisited that level for the fourth time in the last three weeks but bounced, adding just over 5% on the session closing at $52.47. Although growth for this stock has been stellar, perhaps Mondays hard sell off on basically good news is a sign that traders and investors are ready to take some money off the table. The stock can offer up a shorting opportunity on renewed selling just below todays low near $49.40. This potential sell-off could carry down to the 38% Fibonacci retracement level near $41.00 a share, good for gains of around 16%. This level also coincides with the 200 day moving average which may also act a support mechanism for the stock. A second option for more aggressive traders is to look for an opportunity to short shares on a rejection at the 50 day EMA currently near $53.25 should the stock continue to recover in the short term. Here is a look at the chart.

EXASdaily

-CJ Agresta

Join today and get access to both myself and Greg Krupinski of GK Trading for only $69/month. You get daily and weekly analysis of the major indices, trade alerts, sector reviews, educational articles and more! http://www.ttptrading.com

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s