Qualcomm (QCOM) was favored by Jim Cramer in his popular Mad Money program Friday night. Let's check out the charts and indicators ahead of earnings slated for Wednesday.
In this daily bar chart of QCOM, below, we can see that prices have been moving up nicely from late May. Prices are now pushing into a resistance area in the $85-$90 area from April/May. QCOM is above the rising 50-day moving average line and the rising 200-day line.
The On-Balance-Volume (OBV) is up slightly from its late May low but by and large it has diverged from the rising price action. At best the OBV line is steady and a strongly rising line would be more comforting for bulls.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late August and it pointed higher.
In this weekly bar chart of QCOM, below, we can see a bullish picture. Prices are firmly above the rising 40-week moving average line.
The weekly OBV line has been strong since January and is in much stronger shape than the daily OBV line.
The weekly MACD oscillator has been bullish since April and is turning to the upside again for a fresh buy signal.
In this Point and Figure chart of QCOM, below, we can see the current uptrend and a potential upside price target of $93.
Bottom line strategy: Risking below $80, traders could hold existing longs and consider new longs ahead of earnings this week. $93 and then $100 are our upside price targets.
