Shares of biotech giant Illumina (ILMN - Get Report) opened Wednesday's session with a huge upside gap. This earnings-inspired ramp lifted the stock past the June and July highs with the help of a big jump in volume. At midday, ILMN remains well bid and is trading at new 2017 highs. With layers of fresh support now in place, the stock is set up well for more upside.

Back in early May, ILMN began a healthy pullback following its huge rally off the January lows. The stock surged more than 45% during this rally phase, a move largely fueled by a monster post-JPMorgan Conference breakout on Jan. 10. By May, ILMN was retesting the 2016 peak and was showing signs of exhaustion. The consolidation pattern during the last three months has now been resolved with an impressive upside move. A rally back up to the all-time high $242.35, set in July 2015, could be in the cards.

ILMN now has layers of support in place. Initial layer lies between $190.00 and $188.00. This key zone includes the 2016 peak as well as the initial 2017 high set back in May. A dip back down to this area would offer patient investors a low-risk entry opportunity. Also of note, ILMN sports a somewhat high short interest ratio (4.5). This will add upside fuel in the near term.

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At the time of publication, the author had no positions in the stocks mentioned.