The USD 17.8 support area, currently tested, might facilitate a technical rebound for Questcor Pharmaceuticals. The company’s fundamentals could validate this scenario.

In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at USD 2.72 for this year and USD 3.77 for the next year, Questcor Pharmaceuticals is currently paid 7.14 and 5.15 times the results.

Graphically, the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the USD 17.8 area. Questcor Pharmaceuticals should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards USD 28.

It would be profitable to buy Questcor Pharmaceuticals at the current price to target USD 28 and make up the gap. However a stop loss will be placed below USD 17.8.