Stock of the day: Qualcomm

For the fourth time this year, we’re going to analyse Qualcomm. So far it’s been going pretty well, so I hope this analysis will be useful. In the previous piece, from September 16^th, we were bearish saying:

“So, the breakout happened to the downside, giving us a mid-term sell signal. It’s interesting because yesterday’s US session was actually very positive. Nevertheless, Qualcomm went the other way. After the breakout to the downside, we do have one target now and it is the orange horizontal support.”

It was a great call because, after that date, the price kept declining right up until mid-October, when we reached the support we mention above. That was it. This support was a place where the negative sentiment dried out and buyers initiated the recovery. And it’s this recovery that we’re writing about today.

The target for the current bounce is on the red line, which connects the most recent significant lower highs. Price reaching this line looks like a sure bet but of course, there are no sure bets in this market. Nevertheless, sentiment is positive and the target on the red line seems reachable.