Quipt Home Medical Corp T.QIPT

Sebraz, opinion please

[Trademark11]

Would you please give me your opinion on the validity of the complex diamond continuation pattern that has been forming since June 1, peaking August 25, troughing August 5 for a difference of  $2.25 on intraday bars.  Upside breakout supports analyst estimates at 10.25-10.55, downside at 5.60-5.85.  

Thoughts?

[sebraz]

I can't seem to post my diamond drawing, but I drew one on the daily chart with 50,100 and 200MA's. The diamond bottom edge is on July 31st and the top closer to the end of August. Generally, I see a reverse head and shoulders at first instance than a diamond formation, but the formation does look strong and more fitting as a diamond. The next few weeks will be telling whether this is a

[besttobe]

Sebraz wtpote "I can't seem to post my diamond drawing, but I drew one on the daily chart with 50,100 and 200MA's. The diamond bottom edge is on July 31st and the top closer to the end of August. Generally, I see a reverse head and shoulders at first instance than a diamond formation, but the formation does look strong and more fitting as a diamond. The next few weeks will be telling

[sebraz]

will take that as a compliment - I find lscfa's posts very insightful.

[MrGaiiinz1986]

Or maybe a small acquisition before each upcoming investor conference the following 3 weeks? It's been over a month since the last small tuck in.... we will find out this week.... GLTA

[Trademark11]

Thanks for that analysis Sebraz.  Helpful, appreciated, and in line with my measurements! My thesis has mostly been in analysis of what happens sub $10, and have only started to dabble in what happens after $10+.  I have to go back to the long term consolidation patterns from March '16 to September '20......   1.  Double bottom:  Lows Nov '16, March '

[sebraz]

Today's trading looks like we might hit support on the upper diamond pattern with a potential backtest and fill the gap between 7.60 - 7.68. If we run past 8.05, I think we may continue the pattern to $10.00 + Either way, very bullish!

[Trademark11]

Thanks Sebraz, agreed

[sebraz]

Gap is now closed. Let's see if the pattern moves upward or the selling pressure is too much to handle. I have a stop-loss in the low 7's in case qipt reverts downward with the rest of the market. An acquisition announcement would be a great catalyst right about now...especially while they have two more upcoming investor roadshows.

[gibbonsj]

What r u talking about selling pressure? We haven't had a session in 6 months that would indicate there was any selling pressure. A good number of the trades that we see are just head fakes. Small hundred share trades to drive share price down. As soon as there is any serious buying share price jumps. Got your eye on the wrong ball lad.

[sebraz]

Lad, If outflows are higher than inflows, there is selling pressure. Yes, since volume is pretty low, we can get some quick upward moves as we saw after the acquisition and quarterly earnings. Reversely, those gains can be taken down quickly too. Probably would help if you read the thread you're responding to.  Either way back to nibbling again after the gap-fill.

[gibbonsj]

I've been adding shares to an already large position, don't think for a minute that I haven't snuck in the odd head fake here and there to get the best price of the day. I'm fishing for someone with a stop loss in place. Good luck with that.

[Trademark11]

It is coming to the wire with this extended diamond continuation pattern. I was hoping it would have broken upwards by now.  Cibc trading platform says that it already has broken out of what they consider the Diamond Consolidation Pattern, but my measurements show that a close above 7.88 is confirmation.   Agreed that warnings will come in low 7's to at least get your head up

[Trademark11]

As a corollary to that post I strongly feel that, if there is not an announcement of an acquistion today or tomorrow, we will retest mid 7.20's by the end of the week, but this should hold.  Nobody who knows this story wants to be out when the hammer falls .  Sleepwell taken over Oct 26,2020.  They will need a good sized acquistion this year (this month) to keep their numbers

[sebraz]

Not to mention, the revenue value of the acqisition should be atleast 30% higher than the size of the sleepwell acqisition as well.. I know they read this board, so hopefully theyre thinking on the same wave lengths (and thensome) They must realise that it would be a completely missed opportunity not announcing something during these three strategically placed events all within 2 weeks of each

[sebraz]

Very glad to see management are aligned!!! Congrats on the acquisitions and the very important hire of EVP of Operations coming from Preferred Homecare I wonder if they could be for sale - nice strategic locations in California, Colorado, Nevada and Arizona.

[Trademark11]

Hmmmmm......good thought Sebraz.  Worth taking a look.....

[Trademark11]

Turns out Preferred Health was Acquired by Linde in 2019.  Yet another brain drain from a large cap to Quipt!  Must be getting known industry wide as the place to be.....