ILMN

[eliteG]

ILMN - Illumina, Inc. engages in the development and marketing of tools for the analysis of genetic variation and function.. and we will short them.

Technically ILMN is offering us a unique opportunity for a short(great risk/reward ratio) and so we must take it.  With only 7.57% of the float short: (http://www.shortsqueeze.com/index.php?symbol=ilmn&submit=Enter)
there should be plenty of shares to sell. (minimizes chance of a squeeze).  
Also encouraging is the steady selling of insider shares: (http://www.form4oracle.com/company?cik=0001110803&ticker=ilmn)

The first chart portrays the reasons we are taking this technical short.  The blue trend line is broken and begins acting as resistance.  ILMN stops climbing when it meets the prior high creating a double top situation with evidence from the negative divergence of the indicators.  

One could also draw a bullish ascending triangle pattern here but ILMN seems too far extended above its mvg avgs to accomplish such a move.

So the double-top gives us a great place to place a stop, right above.. just in case ILMN does not agree with the analysis.    A potential 1st target is the support @ 23.50 but we will gun for the 50ema+sma region.  The exact target will be updated as we go.

Chart 1:  Daily



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Entry:
We are not planning on rushing into this trade but awaiting a specific trigger area above the current price.  Shorting the shares of ILMN at an area of resistance located on the following 5-minute chart should hopefully leave us with even less risk to the upside.  

Chart 2:  5-minute





We will sell short ILMN @ 25.65 - 25.85 and after execution will place a buy stop @ 26.82.

[AussieTrader]

My initial thought on looking at ILMN was that I didn't quite share the view that this was a great short. The 20ema and mid bollinger bands have been offering great support in ILMN's run from $14 or so and they could still.
However, looking at the double top, the ascending support line which now gives resistance, the negative divergance from MACD and the close stop just above the top zone changed my mind, it makes it a worthwhile low risk venture.
I shorted at $25.72. Will watch that support from the 20ema carefully.
Nice justification detail for the short Elite.
Good luck

[mexirafa]

HOLA!!

IN AT 2.70. 

good luck!!!

rafael

[Loffigus]

HOLA!!

IN AT 2.70.

good luck!!!

rafael

That's an odd price.  Seeing as the stock is trading around 25.65

[eliteG]

My initial thought on looking at ILMN was that I didn't quite share the view that this was a great short. The 20ema and mid bollinger bands have been offering great support in ILMN's run from $14 or so and they could still.
However, looking at the double top, the ascending support line which now gives resistance, the negative divergance from MACD and the close stop just above the top zone changed my mind, it makes it a worthwhile low risk venture.
I shorted at $25.72. Will watch that support from the 20ema carefully.
Nice justification detail for the short Elite.
Good luck

Thank you very much Aussie.  Good point about the 20ema.. lets crush it. 

HOLA!!

IN AT 2.70.

good luck!!!

rafael

Rafeal    If youu shorted @ 25.70 you shorted at the same place we got it.  If you shorted @ 2.70  you would be crying.  Goodluck!

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intra-day update ILMN

-ILMN found our trigger zone and couldn't manage to rise above creating a double-top situation on the intra-day chart  .  Now we are positioned safely to profit from this short.. which is starting to make its way downward... 

[mexirafa]

sorry , i missed a number. 25.70 was my entry

rafael

[KCScott]

Gil,

Scottrade was on the fritz this AM and missed the 25.7 target.

Thoughts on jumping in here at 25.49 or waiting to see if it tries to get back into target range?

Thanks,

Scott

[eliteG]

Gil,

Scottrade was on the fritz this AM and missed the 25.7 target.

Thoughts on jumping in here at 25.49 or waiting to see if it tries to get back into target range?

Thanks,

Scott

Hey Scott, this zone does make a nice entry.. this tight pattern(black box) can open either way but notice the resistance above.  My trigger area was really just being picky.  I believe the risk reward is still good here 

[eliteG]

update ILMN:

What a nice short so far 

Charts:

My plan was to short ILMN at an exact price which should serve as a resistance zone, giving us a good chance of being in profit immediately.



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The stock opened with a dive down but then came back to our trigger range and we sold short @ 25.70.  The stock could not reach above the resistance level although it tried at 3 different instances.  It finished near the days lows  good for us!



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Here is a 60-minute chart of ILMN showing the breakdown.  Notice the black line providing presure..look out below  .



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The great daily chart with our plan.  Risking about a dollar to make 3.. thats a great risk reward ratio.



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Trading plan remains the same.  Good luck to everyone  except ILMN longs.

[eliteG]

Our ILMN short is moving great.. no bounce yet from the 20ema on the daily   

Here is a 5-min chart of the action 

[mexirafa]

Thank you very much for the update.

Regarding the the two green candles that happend after the chart you posted, would taht be considered a bull trap? Thank you for your inut or is it setting up for a short rebound?

thanks,
rafael

[eliteG]

Thank you very much for the update.

Regarding the the two green candles that happend after the chart you posted, would taht be considered a bull trap? Thank you for your inut or is it setting up for a short rebound?

thanks,
rafael

It looks like ILMN attempted a rebound but was unable to maintain it 

Here is an intraday update showing our important resistance areas now.

[eliteG]

 

[Loffigus]

That's a bumpy ride there!! 

[mexirafa]

Hello,

ILMN keeps breaking the intrday resistances. Is this a day trade come back to make some quick profit or is this  should be more conecern?

thanks