My team of traders point out that Qualys (Nasdaq: QLYS), a global cloud-based security company, is set to plunge lower.

Shares have been stuck in a rectangle formation, bouncing between a strong support (green line) and resistance area (red line).

The resistance level was around $97.50 a share, but the support, which failed to hold up two days ago, was around $83 a share.

My team says this $14.50 spread between the two key levels indicate shares have significant downside at the moment.

They believe that shares are set to drop another 10% from current levels to reach $68.50 in the next few weeks.

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