Stock of the day: Qualcomm

It’s been over a year since we last analyzed Qualcomm and back then, the outlook was bearish. At the time, the stock was trading around $170 and a negative setup was evident on the chart. We concluded our previous analysis by stating:

“The first potential target is on the green horizontal support around 166 USD. The second one is the red uptrend line and, most probably, we will be aiming at this one in the mid-term. As long as the price stays below the neckline, sentiment remains negative. A rise above that is currently looking pretty unlikely.”

Although the price did eventually fall below our initial target, it didn’t happen immediately. Instead, we saw a few weeks of bullish correction, followed by a collapse in February 2022. By November, the price had reached lows of below $102. Since then, however, another bullish correction has taken place and thus can be now considered a reversal rather than just a correction.

The stock has created a double bottom formation and climbed above both the long-term down trendline (black) and the horizontal resistance at $129 (yellow). As long as the stock remains above these two lines, the sentiment remains positive. If the price were to drop below $129, it would mean that the orange rectangle was just a false breakout and this would introduce a legitimate signal to sell.

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