Exact Sciences (EXAS) - Continuation of the Downtrend
Based on my previous technical analysis where Exact Sciences exhibited bullish tendencies but warned of a possible substantial correction around the $70 level, we now find ourselves at a critical junction. Two possible scenarios could unfold from here: a bearish three drives pattern leading to a bounce back to around $123 or a continuation of the downtrend following the break of a rising wedge pattern.
Scenario 1: Bearish Three Drives Pattern
If EXAS bounces back to around $123, it may complete a bearish three drives pattern. This pattern generally suggests a reversal is imminent. I intend to start shorting the stock around $120-$124 levels, anticipating a drop to ~$61.
Scenario 2: Rising Wedge Break
On the other hand, EXAS has broken the trend line of a previously noted rising wedge, signaling a potential continuation of the bearish outlook. The target for this bearish breakout lies between $48 and $61.
Key Support Levels to Watch:
$79: If broken, it's likely we'll head to $61.
$60: If this level fails to hold, expect a plunge towards the $50 zone.
In this scenario, my plan would be to go long around the $53-$57 levels.
Risk Management:
In both scenarios, it's crucial to set stop-loss orders and take other risk management measures to protect your portfolio
Conclusion:
While I maintain a favorable view of Exact Sciences for their work in cancer diagnostics and treatment, the technicals suggest caution is warranted at these levels.
Disclaimer: I am not a licensed financial advisor. The information here is for educational purposes. Always conduct your own research and consult a financial advisor before making any investment decisions.
Scenario 1: Bearish Three Drives Pattern
If EXAS bounces back to around $123, it may complete a bearish three drives pattern. This pattern generally suggests a reversal is imminent. I intend to start shorting the stock around $120-$124 levels, anticipating a drop to ~$61.
Scenario 2: Rising Wedge Break
On the other hand, EXAS has broken the trend line of a previously noted rising wedge, signaling a potential continuation of the bearish outlook. The target for this bearish breakout lies between $48 and $61.
Key Support Levels to Watch:
$79: If broken, it's likely we'll head to $61.
$60: If this level fails to hold, expect a plunge towards the $50 zone.
In this scenario, my plan would be to go long around the $53-$57 levels.
Risk Management:
In both scenarios, it's crucial to set stop-loss orders and take other risk management measures to protect your portfolio
Conclusion:
While I maintain a favorable view of Exact Sciences for their work in cancer diagnostics and treatment, the technicals suggest caution is warranted at these levels.
Disclaimer: I am not a licensed financial advisor. The information here is for educational purposes. Always conduct your own research and consult a financial advisor before making any investment decisions.