Friday, August 15, 2014

EXACT Sciences Corporation (NASDAQ: EXAS)

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. The company develops the Cologuard, a non-invasive stool-based DNA colorectal cancer-screening test that is designed to detect pre-cancerous lesions or polyps, and each of the four stages of colorectal cancer. Its Cologuard test includes proprietary and patented methods that isolate and analyze the human DNA that are shed into stool every day from the exfoliation of cells that line the colon; and also protein marker to detect blood in the stool, utilizing an antibody-based fecal immunochemical test. The company’s stool-based DNA colorectal cancer screening technology also focuses on the inflammatory bowel disease.
Take a look at the 1-year chart of Exact (Nasdaq: EXAS) below with added notations:
1-year chart of Exact (Nasdaq: EXAS)
EXAS has essentially been trading sideways for the last 2 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. EXAS’ rectangle pattern has formed a $17.50 resistance (red) and a $15 support (blue). A break above $17.50 would also be a new 52-week high.

The Tale of the Tape: EXAS is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $15, or on a breakout above $17.50. The ideal short opportunity would be on a break below $15.
Please share this article

No comments:

Post a Comment