Genomic Health, Inc. (GHDX), incorporated on August 22, 2000, is a healthcare company that provides genomic-based diagnostic tests to personalize cancer treatment. The Company develops and globally commercializes genomic-based clinical laboratory services. The Company’s Oncotype IQ Genomic Intelligence Platform is consisted of its flagship line of Oncotype DX gene expression tests, as well as its Oncotype SEQ Liquid Select test. Its research and development activities are focused on developing a pipeline of tests to optimize the treatment of various cancers including breast, colon, prostate and other cancers. The Company offers its Oncotype DX tests as a clinical laboratory service, where it analyzes the expression levels of genes in tumor tissue samples and provides physicians with a quantitative gene expression profile expressed as a single quantitative score, which it calls a Recurrence Score for invasive breast cancer and colon cancer, a DCIS Score for ductal carcinoma in situ (DCIS), and a Genomic Prostate Score (GPS), for prostate cancer.
The share price is trending strongly and scores an impressive 1.73 on the VectorVest Comfort Index (CI). CI is calibrated on a scale between o and 2 and a score above 1.3 indicates a price chart that’s trending strongly with little volatility. CI is a VectorVest secret weapon and is invaluable in locating swing trade setups in seconds.
Genomic scores well on the VectorVest fundamental metrics. RV, which measures the share price appreciation over a window of three years into the future as compared to a treble A rated corporate bond is 1.40. This is an excellent. The safety and predictability of the financial performance (RS) is also excellent at a value of 1.33.
A simple Unisearch which looks for a share with an excellent score on CI, RV and RS finds the share in a single click.
The chart of GHDX is shown above using a daily candlestick over the last six months. The moving averages of 21,55 and 89 which I add to all my charts confirm visually the strong trend. In the window below the price VectorVest has plotted Earnings per share (EPS) which is rising linearly from the bottom left to the top right of the window and over the last six months has doubled. VectorVest predicts that’s the shares Earnings will grow at 39% over the next year. EPS is the engine that’s driving the share price advance.
On the 6th November the share gapped upwards through the last old high charted at the end of September 2018. Over the past few days the share has pulled back or in the parlance of technical analysts retraced to this last old high which is to be expected. This level where old resistance becomes support is a magnet for institutional orders.
On the 15th November the share was strongly accumulated at this support level and in the process charted a very bullish candle reversal pattern known as a “bullish engulfing” or “outside day”.
A break above the high of the “bullish engulfing” candle of Thursday 15th November would set in motion a high probability swing trade. The only problem is the state of the overall stock market in the US and all over the world. As I write the Primary Wave (short term trend) and the underlying trend of the US markets are both down and VectorVest advocates waiting until at least the Primary Wave turns up before taking any action.
Should the Primary Wave turn Up and GHDX break up through the high of Thursday 15th November then that would trigger a high probability swing trade.
In November and December, we are presenting a Swing Trading and Candlestick trading Combo Course with VectorVest. The purpose of this mail is to illustrate how using the principles presented in these courses can pinpoint high probability trades such as GDHX regularly.
If you roll up your sleeves and master the material, then you will be able to point high probability trades in the UK and USA markets repeatedly and take control of your financial future.