Stock of the day: Qualcomm

In today’s stock of the day, let’s discuss Qualcomm, which has finally broken out of a weeks-long sideways trend. Since late July, the price had been moving in a tight range, bounded by a horizontal resistance marked with orange and a horizontal support marked with blue. This period of consolidation had traders eagerly waiting for a breakout in either direction.

That breakout finally happened yesterday. The price surged above the upper line of this formation and closed the day above the resistance—a clear buy signal. As long as the price stays above this orange resistance, the sentiment remains positive. However, if the price were to fall back below the resistance, it would indicate a false breakout to the upside, which would then shift the outlook to bearish and signal a potential sell.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-qualcomm-3