Quidel Corp. (QDEL) makes rapid diagnostic testing kits in four categories. On March 17, the company received emergency use authorization from the Food and Drug Administration (FDA) for its Lyra SARS-CoV-2 Assay - a testing kit "for the qualitative detection of nucleic acid from SARS-CoV-2 in nasopharyngeal or oropharyngeal swab specimens from patients suspected of COVID-19 by their health-care provider."
Sounds very official so let's check out the charts of QDEL.
In this daily bar chart of QDEL, below, we can see that prices based out in the March-October time period before launching a rally. Prices have almost doubled in around five months. QDEL is above the rising 50-day moving average line and the rising 200-day moving average line. A bullish golden cross can be seen back in September.
The daily On-Balance-Volume (OBV) line shows a long rise into February/March and then some recent weakness.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since November and is poised to cross to a possible take profits signal.
In this weekly bar chart of QDEL, below, we can see that prices have moved higher over the past three years. Prices are above the rising 40-week moving average line.
The weekly OBV line has been in an uptrend for the past three years and weekly trading volume shows enough liquidity. The weekly MACD oscillator is in a bullish configuration.
In this daily Point and Figure chart of QDEL, below, we can see a potential upside price target in the $145 area.
Bottom line strategy: Traders who are comfortable with risk could consider buying QDEL closer to $85 if available. Risk a close below $80 while setting the $145 area are your potential price target.
