US Stock: Focus Potential upleg of melt up phase resumes for Qualys

Potential upleg of melt-up phase resumes for Qualys (QLYS)

Medium-term technical outlook (1-3months) on Qualys (QLYS)

Key levels (1 to 3 months)

Intermediate support: 73.95

Pivot (key support): 70.85

Resistances: 83.50 & 90.30/60

Next support: 65.25

Key observations

  • The primary uptrend in place since Feb 2016 low of 16.96 remains intact. From its Dec 2017 low of 55.05, the price action has rallied by 38% to print a current all-time high level of 79.40 in early Mar 2013 within a span of just 3 months. The behaviour of such acceleration in terms of magnitude and time suggest that it is likely in a “melt-up phase”
  • After a decline of 11% to print a low 70.85 on 28 Mar 2018, the stock price has recovery by 9% and positive observations can been seen in both the weekly/daily RSI oscillators which suggest a revival of upside momentum.
  • The next significant medium-term resistances stands at 83.50 follow by 90.30/60 which is defined by a Fibonacci projection cluster and the medium-term ascending channel resistance from 01 Aug 2017 (see weekly & daily charts).
  • Key pivotal support will be at 70.85 to maintain a further potential up move within its melt-up phase to target the next resistances at 83.50 before 90.30/60. However, a break below 70.85 shall negate the current bullish tone for a deeper corrective pull-back towards the next support at 65.25 (former medium-term swing high area of 16 Jan 2018, the medium-term ascending channel support from 01 Aug 2017 & the 23.6% Fibonacci retracement of the on-going primary uptrend from Feb 2016 to its current all-time high of 79.40

Charts are from eSignal

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