In a Thursday Real Money column Jim Cramer said he likes Qualcomm Inc. (QCOM) , with its exposure to 5G wireless and a 3.8% yield. Let's check and see what the charts are looking like Friday.
In the daily bar chart of QCOM, below, we can see that prices have been declining since a peak made in the middle of January. The slope of the shorter 50-day moving average line is negative or bearish and the slope of the slower-to-react 200-day moving average line is flat. Prices closed weak Thursday, although with the popular averages due to open sharply higher we could see a two-day price reversal on QCOM. A two-day bottom reversal is a low close followed by a high close. We'll see.
The daily On-Balance-Volume (OBV) line shows a drift lower from the middle of January. Sellers of QCOM have been more aggressive but not in a panic-way. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish configuration below the zero line.
In the weekly bar chart of QCOM, below, we can see some weakness but not a major top formation. Prices are below the flat 40-week moving average line.
The weekly OBV line is just starting to show weakness and the MACD oscillator is still above the zero line.
In this daily Point and Figure chart of QCOM, below, we can see that the software program has projected a potential downside price target of $55. Prices may or may not reach this target but it might be a good suggestion for a sell-stop for any new purchases.
Bottom-line strategy: Just remember that bottoms are a process and not a point in time. Let's see how Friday and next week play out before rushing in.
