QDEL Bottom being put in?

Posted by downtowntrader | 2/01/2006 10:23:00 AM | 0 comments »

QDEL is coming off a bottom and may be headed back up. Looks like a double bottom with a break of the down trendline. This looks like a play that will take a little time to develop, but ultimately should prove profitable.

On the daily, I am looking for a rebound to the 38.2% retrace and 50sma as a minimum. The 50% is also in play, before waiting to see how it shakes out. Every indicator is diverging with the second test of support, and Slow stoch has crossed back from oversold. AROON also is holding it's crossover.

The weekly seems to support my theory of a bottom being put in. QDEL stopped on the 50% retrace of the larger leg up. Look at past big winners and you will see they ALL had these types of pullbacks. In the grand scheme of things, these shakeouts are healthy for a stocks longer term uptrend.

This is only my opinion, but I think QDEL makes a low risk / high reward play right now. Please do your own DD before commiting money to it.
Good Luck,