Qorvo Inc. (QRVO) was giving us mixed technical signals last week, but yesterday it made up its mind. We previously wrote that the indicators on QRVO "continue to give us mixed signals. A close below $68 will tilt the charts to the downside. A rally above $77 will rally the bulls." QRVO rallied strongly Monday and cast its vote with the bulls.
Now that the direction is clear, what other things do we need to watch? Let's review the charts and indicators again.
In this daily bar chart of QRVO, below, we can see how prices surged over the September and October peaks. QRVO is above the rising 50-day moving average line after testing the line just the other day. The 200-day moving average is continuing its rise. The daily On-Balance-Volume (OBV) is still not rising, but heavier volume in recent days should turn this indicator positive. The Moving Average Convergence Divergence (MACD) oscillator has responded to the rally and is pointed up in a bullish mode.
In this weekly bar chart, below, QRVO looks stronger today than on Friday. Strength above $80 will open the way to a possible test of the 2015 highs. QRVO is above the rising 40-week moving average line. The weekly OBV line is close to breaking out on the upside with a new high and the MACD oscillator is turning positive again.
In this updated Point and Figure chart, below, we can see the minor breakout at $78 and the new price target of $91.
Bottom line: Up is the direction. Risk a close below $70 now, looking for gains to the $90-$91 area.