Qualcomm (QCOM) is known for designing and manufacturing semiconductors and wireless telecommunications products. Shares of QCOM are still pointed lower, so let's check out the charts to see what chart points are critical.
In my Oct. 31 review of QCOM, I wrote that "the chart does not (yet) make a compelling story for purchase."
In this daily bar chart of QCOM, below, I can see that prices made a low in early November and prices are close to a retest of that level. QCOM trades below the bearish 50-day moving average line and the bearish 200-day line. The On-Balance-Volume (OBV) line has been weak since late July and tells me that sellers of QCOM have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of QCOM, below, I see a weak picture. Prices are trading below the declining 40-week moving average line. The weekly OBV line shows weakness from August. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this daily Point and Figure chart of QCOM, below, I can see a downside price target in the $88 area.
In this weekly Point and Figure chart of QCOM, below, I can see the same $88 price target as the daily Point and Figure chart above.
Bottom line strategy: Shares of QCOM are poised to retest their November lows, which could open the way to further declines. Avoid the long side of QCOM.
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