A Breakdown in the Charts for Veracyte?

NASDAQ: VCYT | Veracyte, Inc. News, Ratings, and Charts

VCYT – A descending triangle pattern has formed in the chart of Veracyte Inc. (VCYT). If its support level is broken, we could see a breakdown. Read more to learn how to profit from this trade.

A descending triangle pattern has emerged in the chart of Veracyte Inc. (VCYT).  If the support level is broken, a breakdown could occur.

VCYT is a genomic diagnostics company. It provides genomic diagnostic products and services to improve patient care against diseases such as thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis.

The company initially struggled during the pandemic, but came back strong in the third quarter as its revenue and test volumes improved markedly, driven by a recovery in genomic testing. VCYT’s revenue for the third-quarter was $31.1 million, a 50% increase over the preceding quarter, and above its third-quarter 2019 numbers.

As of the end of the quarter, the company had $345 million in cash, compared to only $11 million in long-term debt. VCYT is also plenty of cash to handle short-term obligations with a sky-high current ratio of 26.6.

The company has a history of strong revenue growth, up an average of 17.9% over the past five years. Sales are expected to rise 32.6% this year. Its stock price is trading at a reasonable valuation with a P/E of 22.6.

While VCYT stock is down for the month, it has shown both near and long-term momentum. This mixed performance has led to a “Neutral” rating in our POWR Ratings system.

Take a look at the 1-year chart of VCYT below with my added notations:

  Chart of VCYT provided by TradingView

VCYT has formed key support in the $47 (green) area over the past couple of months. The stock is also declining against a down trending resistance line (red). These two levels combined have VCYT stuck within a common chart pattern known as a descending triangle. Eventually, the stock will break out of it.

A short trade could be made on a break of the $47 support level.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


VCYT shares rose $0.14 (+0.28%) in premarket trading Tuesday. Year-to-date, VCYT has gained 2.17%, versus a 1.28% rise in the benchmark S&P 500 index during the same period.


About the Author: christian


Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
VCYTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Much Resistance @ 6,000 for Stocks?

The post-election rally was an exciting burst for the stock market. With that the S&P 500 (SPY) made new highs just above 6,000. Since then stocks have struggled begging the question: what happens next? 44 year investing veteran Steve Reitmeister provides the answers along with his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

Read More Stories

More Veracyte, Inc. (VCYT) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All VCYT News