Illumina (ILMN) - Get Illumina, Inc. (ILMN) Report has been tracing out a narrow consolidation pattern for the last seven weeks. Yesterday's impressive 4.25% gain, which was the second-best performance in the Nasdaq 100, may soon spark an end to this bullish pennant formation with a fresh rally leg.

Patient investors should take on a more positive view of the stock at current levels. Once the January high is cleared, Illumina has plenty of room to run. 

Back in October, the maker of genomic analysis products suffered a major breakdown. This news-inspired flush dropped shares nearly 25% leaving behind an ominous monthly double top near the 2016 highs. The stock fell even further over the next eight weeks before finally bottoming near $120.00.

Illumina rebounded a bit during the next four weeks before breaking out in early January. This impressive Jan. 6 move came just two days before the stock shot up over 16% after positive news was released at a JP Morgan conference.

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Illumina stock has been consolidating the January 10 breakout for the last seven weeks. The stock has remained in a very tight range during this process and has given back very little of the huge gains. Illumina now looks ready to resume the rally. Investors should consider the stock a fairly low-risk buy near current levels.

A clear move past the January peak of $167.10 will provide increased confidence. On the downside, a close back below $158.00 would take out last week's low indicating more consolidation will be needed before a new rally phase can begin.

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