I found an interesting daily chart pattern in a former holding, Myriad Genetics (MYGN). I have not done a lick of DD fundamentally so there is one significant disclaimer for you to consider. This is purely a chart thing for anyone who might want to look into the situation to consider.
This looks sneaky bullish as a potential bottoming pattern. Yesterday MYGN sneaked above the resistance line and halted at the 200 day moving average. A weekly close above the line and/or the MA 200 would be constructive. Daily MACD and RSI are both positive.
The pattern measurement is 38.
The weekly chart shows a consolidation for all of 2015 that reminds me of the one that Gilead (GILD) had gone through as noted in an NFTRH+ spotlight back in April. A difference is that GILD’s weekly MACD had never gone red (below 0). RSI is positive and clear support is shown.
We have confluence between the daily and weekly because the daily’s pattern measurement is 38 and the top of the consolidation (or downtrend) channel is around 38.
Of course, if the trade is successful it does not mean MYGN has to stop at 38. It could break the consolidation and go bullish. But for the purposes of this setup, we’ll stick to the measurement.
Buy Target: Current level (more conservatively, after a weekly close above resistance)
Sell Target: 38 or just below
Stop Loss: To suit risk tolerance, but do not hold below 31.50 (a stricter stop would be 33.50 and stricter still, a failure of the red dotted resistance line on the daily)
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.
