chartists c davey today

Notice some interest in this turn around opportunity and post this in that context.


atherine Davey
Quadrant Iridium Limited (QAD)
By Catherine Davey, 20 Sep 2006



Describing its principal activity as satellite telecommunications, Quadrant Iridium hasn't been doing much for years. But that might be about to change.

Analysis

The chart for QAD shows it was once worth as much as $3.80. That was back in 1994. A long downtrend followed this high, finally reaching the all-time lows of 2.1c in 2003. When a stock makes a long term downtrend where it loses most of its value, the best case scenario is for a long term period of basing price action. That is exactly what QAD has been doing since the 2003 lows. A double bottom pattern formed when the price closed above 5.9c, but another test of the downside occurred in the middle of last year. A clear break of the base occurred late last year, but like the rest of the stockmarket, QAD lost ground into the middle of the year.

Outlook

QAD has closed above the 6.4c level for a second time. This is a bullish sign. A stock that has spent a long period of time trading at the lows has the potential to have a few false starts before the uptrend gets going. QAD has big mover potential, a declaration I rarely make for any stock that's not in the resources sector. A close below 4.7c and the lows are likely to be retested.

Support:- 0.06; 0.047; 0.031; 0.02

Resistance:- 0.088; 0.10; 0.14; 0.22