Shares of chipmaker Qualcomm (QCOM) have been trading sharply higher since early October. A Real Money subscriber emailed me Monday for an update on the charts and indicators.
We last looked at QCOM on Nov. 4 where we wrote that, "Traders who are still long QCOM from June or earlier should continue to hold. Raise stops to $135. Traders who are flat could buy QCOM at $154 and also risk to $135. Our price targets are $227 and $259."
QCOM has not reached our first price target but I learned on my first job out of university that you should always listen to your clients -- they pay the bills.
Let's review the charts of QCOM again.
In the updated daily bar chart of QCOM, below, we can see that the shares made a small consolidation in early November before rallying higher. Another consolidation can be seen from the middle of November until now. This sort of "backing and filling" gives traders and investors an opportunity to adjust their positions and add to longs on intraday dips. QCOM has seen heavier than "normal" trading volume the past two months.
The On-Balance-Volume (OBV) line moved up strongly into late November and then showed a correction lower. The Moving Average Convergence Divergence (MACD) oscillator is also correcting lower.