Questcor Pharmaceuticals Inc : Anticipation of a technical rebound
October 04, 2012 at 09:49 am
By
Entry price | Target | Stop-loss | Potential |
---|
US$19.41 |
US$0 |
US$17.6 |
-100% |
---|
The USD 17.8 support area, currently tested, might facilitate a technical rebound for Questcor Pharmaceuticals. The company’s fundamentals could validate this scenario.
In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at USD 2.72 for this year and USD 3.77 for the next year, Questcor Pharmaceuticals is currently paid 7.14 and 5.15 times the results.
Graphically, the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the USD 17.8 area. Questcor Pharmaceuticals should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards USD 28.
It would be profitable to buy Questcor Pharmaceuticals at the current price to target USD 28 and make up the gap. However a stop loss will be placed below USD 17.8.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.