The rally in biotech shares appears to be broadening out. As today's session nears a close shares of Illumina Inc. (ILMN - Get Report) , one of the largest companies in the sector, is beginning to breakout. The stock is up more than 3.5% and will retest its 2017 highs very soon. ILMN's healthy pullback from its May peak may soon give way to a fresh rally leg that could carry shares sharply higher.

Shortly after Illumina's last earnings report in late April the stock reached new 2017 highs. This powerful move drove the stock past last year's high but further gains were very limited. The heavy resistance zone hear $188.00 drained ILMN's upside momentum and shortly after a one week battle with this area as May began a deep pullback was underway. By mid June ILMN had returned to key support near the January spike high.

ILMN built a solid base near $168.00 over the last two weeks. The stock has mounted an impressive rally from this area and is now setting up well for continued gains. In the near term ILMN investors should consider the stock a buy on weakness. Nearby support has formed between $182.00 and $179.50. A dip back down to this area will provide a low risk entry opportunity. On the upside, a key hurdle will be the $190.00 area. Once this level is convincingly taken out ILMN will have room to run.

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