Despite missing analyst estimates for the second quarter 2009 and having most of their past performance marked in red on the income statements, Quantum Corporation (NYSE: QTM, QTM message board) still manages to get their stock price higher and higher since the beginning of the year.
The company might not be as bad as it looked some time ago. For the second quarter they even managed to book a 5 Mil profit. However, the profit did not come from direct sales, so there is still place for pessimism.
Recognized as a possible 5 bagger on various forums back in the first quarter 2009, the company obviously lives up to this definition without any important new updates.
Since first setting sail for the big money, the stock has become quite heavily traded and thus susceptible to technical analysis. It looks like the stock simply picked up the wave of market recovery and is tightly holding onto it.
4 day MA crossover of 9 day MA presents yet another opportunity to enter this strong uptrend channel. And while the general market is headed up, it looks like this stocks price advance won't stop.
At current level the price is already above the previous major resistance points established in the April-June period. On quite a strong volume the price breakout is very likely to happen and another pit stop would be somewhere around the $2 mark - a major resistance area the price had established over a year ago.
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