Cloud-based cybersecurity firm Qualys Inc. (QLYS) may not be the most well-known name in the space, but it has an interesting chart pattern.
Let's check the charts and indicators for a strategy even as the stock receives a sell-side downgrade.
In the daily bar chart of QLYS, below, I can see a bottoming pattern evolving from November. The shares have traded sideways with buying interest appearing around $105-$100 and selling resistance in the $130 area. A strong move higher above $130 accompanied by strong volume will be a bullish breakout. The shares are trading above the 50-day and the 200-day moving average line.
The On-Balance-Volume (OBV) line shows strength from early May. The Moving Average Convergence Divergence (MACD) is bullsh.