$ QDEL - Bullish signals before Earnings report
It has been growing dramatically as part of the pandemic, which is not surprising. What I see now. The paper is moving in a downward channel (highlighted in blue). In February it broke through the uptrend line that started in March 20. And now it is trading closer to the lower boundary of the channel.
The maximum that the paper can go down, I see at $104-$105. There passes the border of the channel and the level of resistance. But in the current situation there are some positive signals that in such a descending trend you may try to pick up the paper.
1. I see the formation of a downward wedge (time period from mid-February to the current date). The volatility of the paper is decreasing. This can be seen on the highest indicator.
2. the MACD indicator is in a negative zone, while the indicator line is above the signal line.
3. RSI begins to grow and is already above 50 on the 4-hour timeframe.
4. Short Interest in the paper is at 8.54%.
5. The average analyst Target for the next year $226.5, which gives the upside of about 71.32% of yesterday's closing price.
6. P/E for the company is now 7.2 and it looks undervalued compared to many other companies.
7. On Friday 2/04/21, the company announced that it had received an Emergency Use Permit from the FDA for SOFIA SARS FIA ANTIGEN FOR COVID-19 TESTING and Quidel has also been selected as the "official diagnostic partner" of the San Diego Padres Major League Baseball franchise.
Potential targets in possible developments:
Negative scenario.
1. Hike to a downtrend to the 115 level and take out stops,
2. The subsequent decline to the level of 105. There it is possible to take the long term.
Positive scenario.
1. an aggressive stop at 125 (-5.5%), at a higher risk, a stop just below the last local low at 119.3 (-10.3%).
2. On the upside exit of their wedge, the first upside target is $175 (+32.3%), the second target $192.4 (+45.5% gap level) and the third target $207.8 (+57.1% gap closure level) and potentially a downtrend resistance level.
The angle of the rising trend in the last 2 times was 71 degrees. The current growth from the lows is still going with the same slope. And if it continues, the deadline for reaching the third target is mid-May. And the company has another quarterly report on 05/13/21.
This view is my opinion and is not investment recommendation.
The maximum that the paper can go down, I see at $104-$105. There passes the border of the channel and the level of resistance. But in the current situation there are some positive signals that in such a descending trend you may try to pick up the paper.
1. I see the formation of a downward wedge (time period from mid-February to the current date). The volatility of the paper is decreasing. This can be seen on the highest indicator.
2. the MACD indicator is in a negative zone, while the indicator line is above the signal line.
3. RSI begins to grow and is already above 50 on the 4-hour timeframe.
4. Short Interest in the paper is at 8.54%.
5. The average analyst Target for the next year $226.5, which gives the upside of about 71.32% of yesterday's closing price.
6. P/E for the company is now 7.2 and it looks undervalued compared to many other companies.
7. On Friday 2/04/21, the company announced that it had received an Emergency Use Permit from the FDA for SOFIA SARS FIA ANTIGEN FOR COVID-19 TESTING and Quidel has also been selected as the "official diagnostic partner" of the San Diego Padres Major League Baseball franchise.
Potential targets in possible developments:
Negative scenario.
1. Hike to a downtrend to the 115 level and take out stops,
2. The subsequent decline to the level of 105. There it is possible to take the long term.
Positive scenario.
1. an aggressive stop at 125 (-5.5%), at a higher risk, a stop just below the last local low at 119.3 (-10.3%).
2. On the upside exit of their wedge, the first upside target is $175 (+32.3%), the second target $192.4 (+45.5% gap level) and the third target $207.8 (+57.1% gap closure level) and potentially a downtrend resistance level.
The angle of the rising trend in the last 2 times was 71 degrees. The current growth from the lows is still going with the same slope. And if it continues, the deadline for reaching the third target is mid-May. And the company has another quarterly report on 05/13/21.
This view is my opinion and is not investment recommendation.
All ideas only for information.