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Strong seasonal pattern for Illumina (ILMN Stock) [Video]

The broad conditions for equity buyers remain in place. Easy central bank monetary policy and broad fiscal stimulus mean conditions are suitable for further equity gains. However, investors need to be aware that markets have been trading at elevated levels and are struggling to make new highs despite strong earnings.

Will Illumina move higher in keeping with its very strong seasonal pattern this year? Over the last 15 years, Illumina has gained in value eleven times between June 02 and July 01. The largest gain was in 2019 with a huge 22.04% profit.

Illumina is an American company incorporated in April 1998. Illumina develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. Summer months can be good months for releasing the latest product developments and proposals. Will Illumina’s strong seasonal pattern lift its share prices again this year?

Major trade risks

  • The main risk to this trade is from any risk-off tones which will weigh on equity prices.

  • A fast rise in US inflation could result in bond tapering which would potentially weaken Illumina's share price if US interest rates are expected to rise.

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Author

Giles Coghlan LLB, Lth, MA

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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