Qualcomm Inc. (QCOM) was last reviewed in the middle of June, where I wrote that "One week I am bullish and the next I am not so sure. If you are long I would suggest raising sell stop protection to $57 from below $55. Flip flops are for wearing at the beach not for analysts."
Longs following that advice to raise stops would have been stopped out in late June before prices resumed their advance and making new 2018 highs this month. If you kept your stops below $55 then you are in the driver's seat as prices are higher Thursday morning.
Let's check out the charts and indicators this morning to see how we can reenter the long side.
In the daily bar chart of QCOM, below, we can see the resumption of the rally in July as prices gapped above the rising 50-day moving average line and the bullish 200-day line. The daily On-Balance-Volume (OBV) line strengthened from July and has continued to make new highs, confirming the rally.
Price momentum shows a small bearish divergence from August to September but this is not a precise timing tool.
In the weekly bar chart, below, we went back to late 2014 to show the importance of the recent price strength in QCOM. Prices have broken out over the highs of 2018 and 2016. The height of this pattern (from $50 to $70 or $20 when added to the breakout at $70) gives us a $90 price target. Prices are above the rising 40-week moving average line.
The weekly OBV line is strong and has also made a new high over the peaks of 2016 and 2018. The weekly Moving Average Convergence Divergence (MACD) oscillator is also bullish.
In this Point and Figure chart of QCOM, below, we have a confirming price target of $90. The same target from the weekly bar chart (above).
Bottom-line strategy: If you are still long QCOM I would raise sell stops to $67. If you are flat or aside I would go long above $73 and on a dip back to $72 if available. My upside target for now is $90.