Qualcomm recent rally stalled at range resistance
Kelvin Wong September 10, 2019 11:55 AM
click to enlarge charts
Key Levels (1 to 3 weeks)
Pivot (key resistance): 80.76
Supports: 72.85 & 69.50
Next resistance: 90.34/91.20
Directional Bias (1 to 3 weeks)
Qualcomm (QCOM), a major U.S. semiconductor stock that has seen an increase in volatility due to the on-going U.S.-China trade war tension. The recent rally has stalled at the upper boundary of a 3-month triangle range configuration. Bearish bias below 80.76 key medium-term pivotal resistance for a further potential push down to target the next supports at 72.85 follow by 69.50. On the other hand, a clearance with a daily close above 80.76 invalidates the bearish scenario for a squeeze up towards the long-term ascending range resistance at 90.34/91.20.
- Since its 29 May 2019 low of 64.76, QCOM has been evolving within a medium-term triangle range configuration with the upper limit of the range at 80.76.
- The recent rally of 19.80% from its 67.12 low of 07 Aug 2019 has stalled at the upper limit of the range with a bearish divergence seen in the daily RSI oscillator. These observations suggest that medium-term upside momentum of price action has started to ease.
- The key medium-term support rests at 69.50 which is defined by the lower limit of the triangle range and the 76.4% Fibonacci retracement of the recent push up from 07 Aug low to 05 Sep 2019 high.
- Relative strength analysis against the market (S&P 500) and its sector (Semiconductor) are suggesting further potential underperformance of QCOM.
Charts are from eSignal
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.