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Analysis:

QAN is currently trading at $5.16.

QAN has been trading in an uptrend since the covid crash in March last year. Recently it came off from the highs at roughly $5.85 to form a counter trend line. The recent news around Omicron exacerbated the falls, but as it is becoming clearer that the new variant is not too threatening, the market including QAN, has rebounded. Today is showing the first day of the move with opposite thirds. In addition, QAN is breaking its pennant pattern in the direction of the underlying uptrend. The stochastic are also pointing up, and there is plenty of room back to the recent highs at $5.85.

To trade this, we can implement a Bull Call Spread. This provides the ability to profit from a move back towards $5.85. If setup correctly, it can also profit from sidewards movement. As the market, including QAN, has been volatile lately, it is good to be able to wait for the move.

If you would like to learn how and when to use this strategy, and other strategies like it, then please contact us here at TradersCircle on 03 8080 5788. Alternately, you can download a free eBook off our website which runs through advanced strategies.