Qualys (Friday’s close US$112.00) rallied from US$30.61 to US$97.75 (A-B) above its rising 40-week Moving Average (40wMA). It then settled in wide horizontal trading arrange mostly between US$67 and US$97 for about two years (dashed lines). The stock had a breakout from this range recently to signal the start of a new major up-leg toward higher targets (C).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status.
Qualys is currently quite far above its Average and will likely have a minor correction. There is good support near US$90-US$95; only a sustained decline below the 40wMA (currently near ±US$85) would be negative.
After a correction, Point & Figure measurements provide targets of US$120 and US$135. The large trading range (dashed lines) supports significantly higher targets.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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