QLYS has one of my favorite re-accumulation patterns that is setting up for a 40% rally over the next few months.
Breakout level = 172.49 (it should complete the breakout on 3/12 -3/13)
*Initial Target = 175 by 3/14/2024
** Target 1 = 184 by 3/22
Target 2 = 192
~Initial Target and Target 1 will hit on the first leg up following this breakout, Target 2 might not hit until the second leg up after a pullback to form higher low.
Expected path/forecast is the black arrow, summary:
- run to 184-192 by end of March 2024 (as early as 3/22), sign of strength
- Pullback to test 172-175 for support, backup/retest
- If that holds it will begin markup to 245 (this could take until August-November of 2024)
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Options Play:
QLYS Apr 19 2024 185.00 calls for around 3.35
Not financial advice
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QLYS trades similar to the rest of the cybersecurity names, so this will be a great supplement play to my main cyber longs PANW and CRWD. QLYS just has more affordable call premiums and can buy more time. Its setup is also more stable to support a more sustained run.
Breakout level = 172.49 (it should complete the breakout on 3/12 -3/13)
*Initial Target = 175 by 3/14/2024
** Target 1 = 184 by 3/22
Target 2 = 192
~Initial Target and Target 1 will hit on the first leg up following this breakout, Target 2 might not hit until the second leg up after a pullback to form higher low.
Expected path/forecast is the black arrow, summary:
- run to 184-192 by end of March 2024 (as early as 3/22), sign of strength
- Pullback to test 172-175 for support, backup/retest
- If that holds it will begin markup to 245 (this could take until August-November of 2024)
---------------------------------------------------------------------------------------------------------------
Options Play:
QLYS Apr 19 2024 185.00 calls for around 3.35
Not financial advice
-----------------------------------------------------------------------------------------------------------
QLYS trades similar to the rest of the cybersecurity names, so this will be a great supplement play to my main cyber longs PANW and CRWD. QLYS just has more affordable call premiums and can buy more time. Its setup is also more stable to support a more sustained run.
Comment:
Since this company is somewhat obscure - here is an article that describes what we're dealing with here:
finance.yahoo.com/ne...stock-140000092.html
finance.yahoo.com/ne...stock-140000092.html
Comment:
meant 180 calls not 280
Will add the 285 calls once we get a sustained break above 172.49, but wanted to take advantage of the discount on the lower strike while it lasts.