Stock of the day: Qualcomm

Qualcomm is currently at a crucial juncture, facing a make-or-break moment. The price is trading at a key long-term horizontal support, marked in blue, which also serves as the neckline of a large head and shoulders pattern, highlighted by the yellow rectangle. We are in the process of completing the right shoulder of this formation, and a breakout appears imminent. If the price closes below this critical support, it would confirm the head and shoulders pattern and trigger a strong sell signal.

Interestingly, Qualcomm has already formed a smaller head and shoulders pattern in the past, marked in green, and that pattern played out perfectly, resulting in a sharp decline and reinforcing the negative sentiment. Given that Qualcomm has shown a tendency to respect this pattern before, this current setup deserves close attention.

In summary, if Qualcomm breaks below the blue horizontal support, it will be a signal to sell, confirming the bearish sentiment. However, if the price manages to bounce off this support, it could indicate a potential reversal and serve as a signal to go long.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-qualcomm-1