Power Play Part Two — Check this chart on Quidel ($QDEL). (June 16, 2020)


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I want to get back to Quidel ( NASDAQ: QDEL ) here. This is a stock that got a lot of attention from me but I think other folks were looking at it too. This has been a real runner here from March up until it kind of peaked here, almost 200 percent, and then it has pulled back.

This is not a blow-off top this stock isn’t done. It is not like one of those pot stocks that when people finally came down, they stopped being high and these things got absolutely crushed. Well, this one kind of traded down in an orderly manner. Now, if you were just long this whole time you lost 25 percent on this pullback from the high. But since that time, the stock held here, the 50-day moving average held, and then now we are back up here.

I look at this as a real power move; literally this is a power play type stock, where if it doubles over like 8 weeks I think the rule is, something like that, close enough, from a proper breakout and this was, you have to hold this stock because it is probably going higher. I look at this stock and I see how it’s run back up here so fast; if this stock runs above the high here, we’ll say at 209.00 if this stock goes up to 210.00 then I think it is probably going a lot higher.

If the stock runs up above 210.00 you want to look really, really hard at buying this stock. Keep a tight stop, maybe even keep a stop around 190.00, 189.00, because the idea is if this is a valid breakout it shouldn’t fall too far back below the breakout level. It can fall some but it would be suspect if it fell below today’s intraday low of 193.33. So you set your stop literally at 193.00 or something like that. And that is a way that you can trade this without taking a lot of risks.

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