Shares of Illumina (ILMN) - Get Report soared yesterday on its heaviest upside trade since November of last year. This powerful earnings-inspired ramp drove the stock over 8% higher, putting the biotech company in the No. 3 spot on the list of S&P 500 best performers.

Heading into Tuesday's night's report, Illumina was stuck in a tight consolidation pattern just above what was shaping up as a major bottom. Now the stock is in breakout mode and could be headed much higher.

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Back in February, Illumina retested its 2015 low. The powerful rebound that followed left behind a major support zone near $130. By mid-April, Illumina had rallied over 36% and was once again bumping up against a declining 200-day moving average. As it did in late December, Illumina failed to clear this long-term indicator, resulting in another deep selloff. The stock fell all the way back down to its February low in one fell swoop. As May began, Illumina reached a new low after slipping below $130, but further losses were limited. The stock bounced back and began to build a new base just above the $130 area. Yesterday's news-inspired breakout move is coming off a very solid foundation.

In the near term, Illumina investors should consider the stock a buy on weakness. A drift down to the $156-to-$153 area would retest nearby support at the 200-day moving average. Just below is last week's high at $153.35. On the upside, Illmunia is setting up well for a rally up to its massive April 19 breakdown gap.

Of note, Illumina sports a short interest ratio of 5.2. This will add extra fuel as a new rally leg develops.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.