Qualcomm (QCOM) led semiconductor manufacturers lower Thursday amid Apple (AAPL) iPhone China worries. Let's check out the charts of Qualcomm, which along with Apple are holdings of the Action Alerts PLUS portfolio, to see how its shares may perform in the weeks ahead.
In this daily bar chart of QCOM, below, I can see a large sideways trading range for shares of QCOM. Within this sideways move the indicators have weakened. Prices now trade below the declining 50-day moving average line and the slope of the slower-to-react 200-day moving average line is also negative. The On-Balance-Volume (OBV) line has also been weak the past 12 months. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been weak as it fluctuates around the zero line.
In this weekly Japanese candlestick chart of QCOM, below, the sideways market trend becomes a longer-term downward trend as prices have been weak since early 2022. QCOM trades below the negatively sloped 40-week moving average line. The weekly OBV line has been in a neutral trend since the beginning of 2022. The MACD oscillator is in a bearish alignment. The candles are not showing us lower shadows or a bottom reversal pattern.
In this daily Point and Figure chart of QCOM, below, I can see a potential downside price target in the $97-$96 area.
In this second Point and Figure chart of QCOM, below, the software uses weekly data and projects a target in the $84-$83 area.
Bottom line strategy: Shares of QCOM are likely to trade lower in the weeks and months ahead. Avoid the long side of QCOM and wait for a better buying opportunity after a proper base is formed.
(AAPL and QCOM are holdings of Action Alerts PLUS. Want to be alerted before the portfolio buys or sells these stocks? Learn more now.)
