Yesterday’s session ended well for Qualcomm, one of the biggest producers of Telecom equipment and semiconductors.
Monday’s candle shows us an absolute domination of buyers, from the very beginning to the last minute of trading. From a technical point of view, we have a very interesting setup, which in the long-term is strongly promoting buyers.
First of all, we can see that the recent correction stopped at the 38,2% Fibonacci level. This area was tested a few times and every single bounce was a proper one, lifting the price higher. Aside from the Fibo bounce, we do have a wedge formation (black lines), which is a trend continuation pattern and promotes a breakout to the upside. A breakout to the upside actually happened yesterday, so it’s still as fresh as this morning’s freshly squeezed orange juice. The price closed the day above the upper line of the wedge, which in theory, brings us a legitimate buy signal.
The sentiment on QCOM is positive, as long as the price stays above the 38,2% Fibonacci, which will remain the most important support here. The price going back below that line will bring us a signal to sell but the chance of that happening is slim.