QLYS crashes, losing $14.10 (-14.63%) within a single day on high volume
Qualys Inc. (QLYS) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
QLYS finished Wednesday at 82.31 tanking $14.10 (-14.63%) on high volume, strongly underperforming the S&P 500 (0.3%) following Tuesday's earnings report. This is the biggest single-day loss in over three years. The last time we've seen such an unusually strong single-day loss on December 17, 2018, QLYS actually gained 4.22% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (QLYS as at Feb 13, 2019):
QLYS reported earnings of $0.51 per share after Tuesday's market close. With analysts having expected an EPS of $0.4, Qualys Inc. topped market expectations by 27.5%. The company's last earnings report was released on Oct. 30, 2018, when Qualys Inc. reported earnings of $0.49 per share beating market expectations by 28.9%.
Wednesday's trading range has been $5.54 (6.86%), that's far above the last trading month's daily average range of $2.66. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for QLYS.
Prices are trading close to the key technical support level at 79.10 (S1). Qualys closed below the 200-day moving average at 82.40 for the first time since January 24th.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Qualys. Out of 19 times, QLYS closed higher 57.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 68.42% with an average market move of 3.93%.