Questcor, QCOR, a stock that I have mentioned since the fall of 2008, made a new all time high today. At that time I took an interest in QCOR because it was the #1 stock on a relative strength basis in the Russell 3000 off and on for several weeks at a time when the market was crashing. This led me to believe that this small cap biotech had institutional support that could take it to much higher highs. I started with a small position in 2008 and have added to it during its 2009 declines.
Now, QCOR has made it back into the top 200 stocks in the Russell 3000 again at a time when the market has had a severe selloff. I believe that this behavior confirms the underlying support for this stock. From this point my elliott wave analysis of the stock indicates that it is either going to crash, or it has the potential to move up to 25. Until I see evidence that it cannot sustain a breakout above 10, I will continue to hold this stock for higher prices. However, I think we will probably see further consolidation and testing of the 8 to 10 zone before we see higher prices.
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