Thanks. The charts look to be shaping up nicely IMO, but it's too early to call. They have the makings for a nice, long run up. However, several trends are yet to establish themselves. A purely technical trader would probably not jump in at this point: from the constellation of stocks he'd run TA on, Quantum would probably end up on the "watch" list at this point.
Of course few of us who take the time to learn about and discuss stocks on SI, except for the TA specific threads, depend solely on TA. I've met some TA traders who buy or short the "heart of the move" - trying to time their entry/exit for roughly 20% after the move has established itself and clearly shows the trending in the TA up to about 80% of the extent of the move, or when the move has started to break down by the chart indicators. By that logic, you would get into Quantum after it has made the first or second leg of the move up. When a reversal in direction and a new trend is establishing itself, the stock will often move up a bit and then draw selling (or buying if your shorting) and pull-back from 1/3 to a full retracement to re-test, then it will resume it course. Many TA traders wait for this pullback, move forward, pull-back and then on the next move forward they buy. There are lots of other strategies, all designed to increase you chances for success. None of them are perfect because they all rely on historical data in an attempt to predict the future. I think TA is an excellent tool when combined with an understanding of the sector, TA of the sector, TA of the market, understanding of the market, and most important of all, an understanding of the stock. Of course, if I was so damned smart I had this all figured out, I'd be retired. |
