A massive H&S pattern on the weekly chart, with a double bottom and double divergence right at the neckline. As of this week, the impulse is blue.
On the daily chart, the double bottom is more obvious. The right time to enter was right after earnings, where Illumina recovered all the overnight losses and closed up for the day. Still, the RRR is acceptable even today.
I would trade this stock as follows: Go long with a stop below the earnings day, with a target for at least half the position just below the 78.6 retracement. The remaining position should be kept in case this proves to be a failed H&S pattern.
On the daily chart, the double bottom is more obvious. The right time to enter was right after earnings, where Illumina recovered all the overnight losses and closed up for the day. Still, the RRR is acceptable even today.
I would trade this stock as follows: Go long with a stop below the earnings day, with a target for at least half the position just below the 78.6 retracement. The remaining position should be kept in case this proves to be a failed H&S pattern.
