70c support level broken

Those following RQL will have noticed a fall in the SP over the past few days and the break of a critical support level at around 69-71c. The SP went as low as 66c and closed yesterday at 67c.

Cause for concern here. I like the company but its valuation is reasonably lofty and prices in the forecast growth for FY11 and FY12 at a SP of 70c. I think sentiment and new buyers have perhaps dried up and I wonder if we will retest 60c in the near term.

Nothing wrong with the company - its just a little expensive at these levels IMHO. Plenty of oversold larger players on similar ratios with decent growth rates.