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QCOR trending higher and oversold
Questcor Pharmaceuticals (QCOR): new mean reversion trade
Company Description
Questcor Pharmaceuticals, Inc. (QCOR) is a pharmaceutical company. Questcor's primary drug is H.P. Acthar Gel, an injectable drug that is approved by the United States Food and Drug Administration for the treatment of a variety of diseases and disorders.
Relative Strength
The relative strength for Questcor is very positive. For 2010, the shares of QCOR are up 98.74% as of mid-day on 7/7/10 while the broad market as measured by the S&P 500 index is down 6.45%.
Short-Term Reversion to the Mean Data
- Stock: Questcor Pharmaceuticals (QCOR)
- Price: 9.40
- Trend: Higher (based on the price in relation to the Ichimoku Clouds indicator)
- 2-day RSI: 1.71 (below 5 is oversold)
- Risk: 2% of account equity
- 20-day Average True Range (ATR): 0.541
- 3 times ATR: 1.62
- Target price: 11.02 (three times ATR plus the current price of 9.40)
- Stop loss: 7.78 (current price of 9.40 minus 3 times ATR)
- Position size: 11.58% of equity (2% of equity risk divided by the 3 times ATR times the price)
Wednesday's Trading Strategy
Buy QCOR at 9.40 with a target price of 11.02 and an initial trailing stop of 7.78. If the stock moves higher but has not reached the target price, the stop loss should be raised beneath the highest closing price.
For more information on this strategy and other profitable trading and investing strategies visit Grail Investing at grailinvesting.com.
Note: All articles are for educational purposes only. This information should not be interpreted as a recommendation to purchase, sell or hold any security at any time. Always consult with an investment advisor familiar with your financial goals before making any investment or trading decisions.
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