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
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.