Stock of the day: Qualcomm

Today, we need to update you Qualcomm, because we think that the direction is changing and our previous bullish view is no longer valid. We previously mentioned Qualcomm in October, last year and back then, the price was around 130 USD. We were bullish, saying:

“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.”

After this, the price was climbing higher like crazy. At the beginning of this year, we even managed to touch levels above 190 USD! Great call. But now, it seems that the sentiment is changing. Over the last three months, the price managed to create a triple top formation (yellow). Yesterday, the price managed to break the neckline (black) of this pattern with a very nasty bearish candlestick. In theory, that triggers a sell signal.

The first potential target is on the green horizontal support around 166 USD. The second one, is the red up trendline and most probably, in the mid-term, we will be aiming at this one.

Sentiment remains negative, as long as the price stays below the neckline. A rise above that is currently looking pretty unlikely.