The well-known science research company, Quanterix Corp (NASDAQ: QTRX) seem to be poised for a price surge as per its latest charts.
Bullish Indications
#1 Falling Wedge Pattern Breakout: As you can see from the daily chart, QTRX has been trading within a falling wedge pattern during the past few weeks. This is marked in the daily chart in purple color. Currently, the stock has broken out of the falling wedge pattern with very high volume. A Falling Wedge Pattern is a bullish pattern. Once the stock breaks out from it, it has the potential to move further up.
Daily Chart – QTRX
#2 MACD above Signal Line: The daily chart shows that the MACD line (blue color) is currently above the signal line (orange color).
[hana-code-insert name=’adsense-article’ /]This is a possible bullish setup.#3 %K above %D: The %K line is above the %D line in the stochastic.
This is a bullish sign.
#4 Above MA: In the daily chart of QTRX, the stock is currently trading above both 50-day as well as 20-day SMA.
This implies that the bulls are currently in control.
#5 Downtrend Broken in Weekly Chart: As evident from the weekly chart, the downtrend of the stock has now been broken.
This is a bullish sign. The stock is also above its 20-week SMA.
Weekly Chart – QTRX
#6 Strong RSI: The RSI is above 50 and moving up. This is a bullish sign.
#7 Bullish Stochastic: The weekly chart shows that the %K line is above the %D line in the stochastic. This indicates that an upmove may be imminent.
#8 MACD above Signal Line: In the weekly chart as well, the MACD line (blue color) is currently above the signal line (orange color), indicating bullishness.
#9 Double Bottom Breakout: The stock has currently broken out of a double bottom pattern. This double bottom pattern is marked in the weekly chart in pink color. This is a bullish reversal pattern and the breakout from it usually indicates that the stock could possibly move upwards.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for QTRX is at the current price of $18.57.
TP: Our target prices are $25 and $35 in the next 4-6 months.
SL: To limit risk, place stop-loss at $14.50. Note that the stop loss is on a closing basis.
Our target potential upside is 35% to 88% in the next 4-6 months. For a risk of $4.07, our target rewards are $6.43 and $16.43. This is an almost 1:2 and 1:4 risk-reward trade.
In other words, this trade offers nearly 2x to 4x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the channel and the falling wedge pattern with a high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
Tara
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