Conclusion, Investment Implications, Strategy
Bio-Techne Corporation (TECH) appears to be resuming its March advance following an 18% correction from the late July highs. A sustained rise above the $232.00 area would help confirm this and target a 17% rise to $286.68. This is an Asbury Value idea.
Analysis and Rationale
Bio-Techne Corporation (TECH), together with its subsidiaries, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets worldwide. The company operates in two segments, Protein Sciences, and Diagnostics and Genomics. The company was formerly known as Techne Corporation and changed its name to Bio-Techne Corporation in November 2014. Bio-Techne Corporation was founded in 1976 and is headquartered in Minneapolis, Minnesota.
Chart 1 below plots TECH daily since January, highlighting its current retest of major underlying support at its 200-day moving average following an 18% corrective decline from the Jly 20th high. Not shown is that a number of market internals are starting to improve as TECH tests this major support, which is currently at $232.16.
A sustained rise above the $232.00 area would target a 17% rise to retest $286.68.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $235.64 area, a long entry price of $245.81 would provide a 1:4.0 risk/reward ratio (risking $1.00 to make $4.00) with an initial risk of 4.1%.
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.