Qualcomm Inc. (QCOM) is scheduled to report fiscal fourth-quarter results on Tuesday. The semiconductor industry of which Qualcomm is a part has suffered in the past year, so let's see if the charts are showing us any improvement.
In this daily bar chart of QCOM, below, we can see that QCOM stalled out in late 2021 and early 2022. Prices turned lower from early February and weakened into early October. We can see that prices have inched up about $10 in October but that does not improve the picture all that much. QCOM is still below the declining 50-day moving average line and below the declining 200-day line. Trading volume has not increased as prices tick up and the On-Balance-Volume (OBV) has not improved to tell us that buyers of QCOM have turned more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to a cover shorts buy signal but an outright buy message is not immediately at hand.
In this weekly Japanese candlestick chart of QCOM, below, you can see a harami bottom reversal in October. Bottom reversals can mean a turn from down to up or a turn from down to sideways -- both signals are important information. The price action is still below the declining 40-week moving average line. The weekly OBV line has rolled over the past year. The MACD oscillator is bearish but has started to narrow.
In this daily Point and Figure chart of QCOM, below, we can see a price target in the $127 area.
In this weekly Point and Figure chart of QCOM, below, we can see a potential downside price target in the $101 area.
Bottom line strategy: I have no knowledge of what QCOM will tell shareholders on Tuesday but the chart does not (yet) make a compelling story for purchase.
