(NASDAQ:QCOR) is a biopharmaceutical company that provides drugs for the treatment of multiple sclerosis, nephrotic syndrome, and infantile spasms indications.
What I Am Looking At:
In late August, shares peak at an all-time high of $74.76.
A bearish head-and-shoulders pattern played out after hitting a target of $55.
Shares pulled back just over 20% from August peak.
Shares are possibly catching support from the rising 80-day moving average (purple line), which has had significance in the past.
Late July's upside gap area could also add to the support case.
Peak put open interest at the 55-strike could be a roadblock for further declines in share price.
Daily RSI (Relative Strength Index) is indicating oversold condition.
Short interest has been rapidly declining, which is an indication that shorts are in cover mode.
18% percent of the float remains short.
10-day buy-to-open put/call ratio stands at 1.74, expressing a near extreme in pessimism.
Fundamentals look solid as quarterly revenue growth (year-over-year) is 64% percent and quarterly earnings growth (year-over-year) is 72%.
Looking for shares to resume uptrend from 80-day moving average pullback
This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research.
Below, find some more great content from Schaeffer's Investment Research:
Daily Game Plan – Small Cap Leadership
Why Bonds Could Have Just Made a Major Low
Trading 101: Looking at a Calendar Spread
No positions in stocks mentioned.