Chart of the Day: Is Qualcomm Ready for a Big Move After Earnings?
The stock has been volatile on news, but is still above the breakout move. Here's the key price to watch.
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It's a rough time to be in the semiconductor group as many of the names that have reported earnings so far have come back down to Earth. Several of the bigger names such as Nvidia (NVDA) and Broadcom (AVGO) will report in the coming weeks, but clearly some of the recent profits are being taken. And that includes Qualcomm (QCOM) , which reports earnings on November 5 after the market close.
A recent positive news item for the company a couple weeks back had the stock surging higher but it has since settled back down towards that breakout level. We banked some gains on that big up session. Selling on the news is nothing new to Qualcomm. meanwhile, the chart is still bullish but just a bit "less so" than last month.
The indicators have cooled off a bit. The moving average convergence divergence (MACD) is pointing lower, but the ADX is strong, which tells us the trend is very good. Since this indicator does not tell us direction, it means the bullish trend remains intact (that is the prevailing trend).
Breadth has been good, not great (bottom pane), money flow is still not bullish yet and stochastics (momentum) has slowed down. However, the candles are teal, which represents cautiously bullish on the GoNoGo composite of indicators. A move above $178 confirmed would be a good start to get this stock moving towards $200.
We like Qualcomm in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long QCOM and NVDA.
