Chart of the Week: Qualcomm
This time we’re profiling large semiconductor identify, Qualcomm, image QCOM. Let’s check out the day by day chart and the weekly chart right here.
Day by day chart has been bullish since November
As you possibly can see I famous right here on this chart a very robust bullish breakout from again in November. This adopted a very robust earnings transfer, and it pushed up at the start of November, consolidated a bit, after which rallied up robust, in regards to the thirteenth or 14th of the month. And it’s been making a very nice transfer of upper highs and better lows, which is the textbook definition of an uptrend.
You possibly can see the candle chart is exhibiting gentle blue, and this, in keeping with the go-no-go indicator, says that it is a strongly bullish chart. Really something that’s blue or teal – we see a number of days of teal coloration over right here – teal is extra cautiously bullish. So actually for the reason that starting of November, Qualcomm’s chart has been strongly bullish or cautiously bullish, however principally strongly bullish.
We additionally see a crossover right here on the MACD – a purchase sign. Try the energy on the Chaikin cash circulation. That is simply tremendous spectacular. And this goes again to the center a part of October. We’ve been above the zero line for the reason that center a part of October, been making greater highs and better lows. We’re at a peak proper now in cash circulation. And that could be a constructive.
Weekly chart exhibiting some resistance
Now let’s check out the weekly chart and see what we’re seeing.
As you possibly can inform on the day by day chart, the inventory is just about overbought. However on the weekly chart right here, we do have some resistance coming in from the ’22 interim highs, which is available in at about $150. You may say, “Effectively Bob, the inventory is at $145. Is it actually price it to play for an additional $5 when there may be probably some draw back there to fill some gaps, particularly on the day by day chart?”
And I’d say the reply isn’t any. I feel there’s some good alternative right here. Certain there may be going to be pullbacks alongside the way in which. However this inventory is absolutely very very robust, and for those who check out the candles from the previous 7 1/2 – 8 weeks, you discover that the amount has been very robust. Worth motion has been excellent. And that’s all that actually issues once we’re evaluating shares.
We’ve secondary indicators just like the Chaikin cash circulation, the relative energy, the MACD and different issues like that that assist affirm the worth and quantity motion. If worth and quantity motion are telling you one thing, and also you get affirmation from the others, properly that simply makes it even stronger and giving a way more compelling purpose to purchase the inventory.
I do like Qualcomm right here. In all probability over the interval of ’24-’25, developing within the new yr, and I feel this inventory has bought some room to get again to these outdated highs again within the early a part of 2022. That is available in about $180 – 185. That may be a very nice transfer for this inventory over that point. It’s not going to be a straight line, however it might a pleasant transfer up in direction of these excessive ranges by the tip of the yr.
In order that’s Qualcomm, QCOM.
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