Qualcomm (QCOM) is pointed higher on the charts. We last checked in on QCOM on November 2 and wrote that, "As you sit on the edge of your chair until Tuesday evening, be ready to take action on QCOM if needed."
How do the charts look now ahead of their earnings release on Wednesday? Let's check.
In this daily bar chart of QCOM, below, we can see that prices have made several successful tests of the rising 50-day moving average line. The slower-to-react 200-day also has a constructive slope and QCOM is not extended or overbought when compared to it.
The On-Balance-Volume (OBV) line shows a strong rise from May to early November followed by a sideways trend. The OBV line is close to making a new high for the move up and that will be a positive development for the stock.
The Moving Average Convergence Divergence (MACD) has been above the zero line since April.
In this weekly bar chart of QCOM, below, we see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line shows more aggressive buying than selling.
The MACD oscillator has narrowed significantly but may not cross to the downside IF prices rally from here.
In this daily Point and Figure chart of QCOM, below, we can see that the software is projecting a downside price target in the $141 area.
In this weekly Point and Figure chart of QCOM, below, we can see an upside price target in the $177 area.
Bottom line strategy: I have no idea whether QCOM's earnings will be bullish or bearish. We have a daily Point and Figure chart with a downside price target and a weekly Point and Figure chart with an upside target. I favor going with the trend which is up. Risk to $139 on any longs.
