It is amazing how quickly Qorvo, Inc. (QRVO) reversed from up to down. At the beginning of November QRVO made a new high close for the move up we were bullish, saying that "Up is the direction. Risk a close below $70 now, looking for gains to the $90-$91 area." As soon as the ink was dry on that review, QRVO made a shallow dip, but then tried the upside again. Prices could not break above the early November zenith and have since tumbled lower.
QRVO has closed below both the 50-day and the 200-day average line and below our recommended $70 risk point. Now what?
In this daily bar chart of QRVO, below, we can see that the pattern of higher highs and higher lows (i.e. an uptrend) was broken recently as QRVO broke its October low. The slope of the 50-day moving average line has turned lower and the 200-day line is cresting -- very different from just a few weeks ago.
The daily On-Balance-Volume (OBV) has been declining since June and made new lows repeatedly through November and into December. The daily OBV line did not look so bearish because the weekly OBV line was steady. This updated chart shows that the Moving Average Convergence Divergence (MACD) oscillator is below the zero line for an outright sell signal following the take-profits sell signal in late November.
In this weekly bar chart of QRVO, below, we can see a number of sell signals. Prices are below the 40-week moving average line after a number of tests of the line since June. The weekly OBV line is weakening and the MACD oscillator is about to cross to the downside for a fresh take-profits sell signal.
In this Point and Figure chart of QRVO, below, we can see that the $68.09 level on the chart has held a number of times, but in this chart point breaks we could see a deeper decline to $64.12.
Bottom line: Unless we are living through a bear trap and prices reverse to the upside and close back above $73, I would anticipate that QRVO works lower in the weeks ahead.