On Quidel, Time to Book Profits and Take a Victory Lap

Technical analysis and trading strategy on the healthcare stock

When we last wrote about Quidel Corp. (QDEL) , back on March 24, we said, "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 as your potential price target." Prices got close to $144 Monday so a fresh look at the charts is in order. 

In the updated daily Japanese candlestick chart of QDEL, below, we can see that price dipped in late March to allow traders to go long at $85 or better. Prices quickly rallied to our target area and we can see some upper shadows above $140.

The On-Balance-Volume (OBV) line has leveled off suggesting a balance between buyers and sellers. The Moving Average Convergence Divergence (MACD) oscillator has been narrowing, telling us that the strength of the trend is waning. 

 

In the weekly candlestick chart of QDEL, below, we can see that prices have doubled from its 2018-19 consolidation pattern. The candle last week was a doji where the open and close are nearly the same and representing a balance between bulls and bears.

 

The weekly OBV line is strong and the MACD oscillator is bullish.  

 

 

In this Point and Figure chart of QDEL, below, we can see that the stock reached and exceeded its upside price target in the $134 area.  

 

 

 

Bottom-line strategy: Quidel's charts and indicators tell me to recommend booking profits on the shares.

 

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