Qorvo Inc. (QRVO) is set to report their latest earnings and revenue numbers after the close of trading Wednesday. While the stock has suffered a long decline, the charts have been improving. Let's check out the latest.
In the daily bar chart of QRVO, below, we can see that the shares were cut in half over the past 12 months. Prices have shown some stability since the middle of June and some bullish divergences have surfaced.
QRVO made new lows for the move down in June but the daily On-Balance-Volume (OBV) line did not make a new low to confirm the price weakness. The Moving Average Convergence Divergence (MACD) oscillator also made a bullish divergence with a higher low in June than in May even though prices were weaker.
In the weekly Japanese candlestick chart of QRVO, below, we can see a bullish engulfing pattern at the end of June and the beginning of July. Prices have improved and so have the indicators.
The weekly OBV line shows the start of a low in June and the MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of QRVO, below, we can see a potential upside price target in the $129 area.
In this weekly Point and Figure of QRVO, below, we can see a price target in the $138 area.
Bottom-line strategy: I have no special knowledge of what QRVO will report to shareholders Wednesday evening but the charts are looking better than they did last month
In our July 11 review of QRVO we were bearish on the stock and wrote that "QRVO could turn sideways and start a base pattern, but I just do not see that as the most likely course of movement right now. Avoid the long side as further declines are possible."
QRVO did indeed turned sideways and now we could see a sideways to modestly higher move from here.
