Send me real-time posts from this site at my email
Fan Yang

Qualcomm (QCOM) Testing Previous Support as Resistance

a couple of weeks ago, we observed a bullish engulfing candle on the daily chart of Qualcomm (QCOM). This suggested a bullish outlook in the short-term against a medium-term bearish trend. Thus, we were anticipating a rally, and a subsequent dip to revive the prevailing bearish trend.

QCOM Daily Chart

(click to enlarge)

The Bearish Trend:
- First of all, we can see that the bearish trend is a medium-term one, since last November. 
- The longer term mode appears to be sideways, or directionless. While the bearish trend could simply be within a sideways market, we can at least say that there is NO bullish trend.
- This is the basis on why I believe the market will fade the current rally.
- We noted a key resistance around 56 in our previous assessment of QCOM.
- Indeed price has come up to 56, but we have yet to see evidence of resistance, though price has not broken above 56. 
- 56 was a previous support pivot that could turn into resistance.
- Furthermore, the daily RSI has tagged 60. If the market is indeed still bearish, the RSI should hold and turn down at 60, which it might be doing.
- I think there could be some break above 56, but as long as it is brief and the market quickly fades the rally, the bearish outlook is still valid. 
- But if price can break above 56.10, the market is likely turning from bearish to sideways. 

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue