Wednesday, the stock felt the ire of spurned investors and disgruntled brokerages. MYGN is more than 25% lower as a four brokerages (at last count) cut their ratings on the firm.
So, the stock fell more than 25% in morning trading -- but is this fall simply fulfilling MYGN's fate? Technically, the stock was already in a rather pronounced slump, dropping from a high in the $46 region to the $22 region before the disappointing forecast. The slump was driven by the equity's 10-, 20- and 50-week moving averages. While the post-forecast plunge is nasty, it may have been a case of simply delaying the inevitable.
Is there good news in the drop? Perhaps. We could see the stock rebound and head higher, as it will have some room to run before encountering resistance from its trendlines. That said, when the overall trajectory of a stock is down, it is hard to be bullish for any reason.
What's more, Myriad's 10-month trendline is on the verge of a bearish cross of its 50-month counterpart. More often than not, this technical formation precedes a continued slump. This means that the stock could see a continuation of the bearish beat-down that started early in 2009.