Qualcomm Inc. (QCOM) announced its fourth-quarter numbers Wednesday night and the stock was trading higher before Thursday's opening bell as its earnings beat expectations. QCOM is the Stock of the Day at Real Money, so let's check the charts again here on Thursday morning.
We reviewed the charts of QCOM on Monday. We wrote at that time, "Risking below $80, traders could hold existing longs and consider new longs ahead of earnings this week. $93 and then $100 are our upside price targets."
In this new daily bar chart of QCOM, below, we can see that prices are still above the rising 50-day and 200-day moving averages. The recent price action looks like a small bullish flag or pennant formation. This pattern is a short-term continuation pattern where the length of pole or the rally before this flag or pennant is repeated on the upside. The pole looks like a $5 rally, so we should see QCOM quickly surge up to $90 from this chart pattern.
The daily On-Balance-Volume (OBV) line has been creeping higher and telling us that buyers of QCOM remain more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is still bullish and pointed higher.
In this weekly bar chart of QCOM, below, we can see a bullish picture where the price of QCOM has continued to push up into the $85-$90 resistance area. Prices remain firmly above the rising 40-week moving average line. The weekly OBV line is rising and the MACD oscillator is still bullish.
In this Point and Figure chart of QCOM, below, we can see the stock's recent strength and a $93 price target.
Bottom line strategy: Continue to hold longs and consider adding on strength. Continue to risk below $80 for now.
