Qualcomm (QCOM) has made some dramatic up and down moves in the past three months. Probably hard to trade and hard to anticipate. Prices are higher Monday, but well off their best levels of the day. We could be looking at a key reversal, but the day is long and anything can happen. Let's check out the charts and indicators.
In this daily bar chart of QCOM, below, we can see how prices soared and gapped higher in April. Prices rolled over in late April and early May and then gapped lower to retrace more than half of the April surge. Prices gapped higher again today above the rising 50-day moving average line but prices have given up most of the intraday gains. The On-Balance-Volume (OBV) line is slightly positive, and the Moving Average Convergence Divergence (MACD) oscillator is ready to cross above the zero-line for an outright go-long signal.
In this weekly bar chart of QCOM, below, we can see a long sideways trading range with an upside breakout this year. Prices corrected much of the new gains, but remain above the 40-week moving average line. The weekly OBV line is bullish, and the MACD oscillator is poised for a turn up or down as the two lines are on top of each other.
In this Point and Figure chart of QCOM, below, the gaps are not shown but there is an upside price target of $84.
Bottom line strategy: Wait for a better buying opportunity for QCOM where the risk is lower.