Wednesday, December 30, 2015

Cepheid (NASDAQ: CPHD)

Cepheid, a molecular diagnostics company, develops, manufactures, and markets integrated systems for testing in the clinical market and non-clinical markets. Its systems enable molecular testing for organisms and genetic-based diseases by automating manual laboratory procedures. The company primarily offers GeneXpert system that integrates sample preparation in addition to DNA amplification and detection. The GeneXpert system is designed for reference laboratories, hospital central laboratories, and satellite testing locations, such as emergency departments and intensive care units within hospitals, as well as physician offices and other alternate site laboratories.
Take a look at the 1-year chart of Cepheid (Nasdaq: CPHD) below with the added notations:
1-year chart of Cepheid (Nasdaq: CPHD)
CPHD has had a rough go of it over the past 5 to 6 months. However, since the low in October, the stock appears to have formed a double bottom (green) price pattern. The pattern is as simple as it sounds: Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again.
As with any price pattern, a confirmation of the pattern is needed. CPHD would confirm the pattern by breaking up through the $38 resistance (red) that has been created by the double bottom pattern.

The Tale of the Tape: CPHD may be forming a double bottom price pattern. A long trade could be entered on a break above the $38 resistance with a stop placed under that level. Traders that are bearish on the stock could short the stock at $38.

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