Chart of the Week: Qualcomm
This time we’re profiling big semiconductor name, Qualcomm, symbol QCOM. Let’s take a look at the daily chart and the weekly chart here.
Daily chart has been bullish since November
As you can see I noted here on this chart a really strong bullish breakout from back in November. This followed a really strong earnings move, and it pushed up at the beginning of November, consolidated a bit, and then rallied up strong, about the 13th or 14th of the month. And it’s been making a really nice move of higher highs and higher lows, which is the textbook definition of an uptrend.
You can see the candle chart is showing light blue, and this, according to the go-no-go indicator, says that this is a strongly bullish chart. Actually anything that’s blue or teal – we see a few days of teal color over here – teal is more cautiously bullish. So literally since the beginning of November, Qualcomm’s chart has been strongly bullish or cautiously bullish, but mostly strongly bullish.
We also see a crossover here on the MACD – a buy signal. Check out the strength on the Chaikin money flow. This is just super impressive. And this goes back to the middle part of October. We’ve been above the zero line since the middle part of October, been making higher highs and higher lows. We’re at a peak right now in money flow. And that is a positive.
Weekly chart showing some resistance
Now let’s take a look at the weekly chart and see what we’re seeing.
As you can tell on the daily chart, the stock is pretty much overbought. But on the weekly chart here, we do have some resistance coming in from the ’22 interim highs, which comes in at about $150. You might say, “Well Bob, the stock is at $145. Is it really worth it to play for an extra $5 when there is possibly some downside there to fill some gaps, especially on the daily chart?”
And I’d say the answer is no. I think there’s some good opportunity here. Sure there is going to be pullbacks along the way. But this stock is really very very strong, and if you take a look at the candles from the past 7 1/2 – 8 weeks, you notice that the volume has been very strong. Price action has been very good. And that’s all that really matters when we’re evaluating stocks.
We have secondary indicators like the Chaikin money flow, the relative strength, the MACD and other things like that that help confirm the price and volume action. If price and volume action are telling you something, and you get confirmation from the others, well that just makes it even stronger and giving a much more compelling reason to buy the stock.
I do like Qualcomm here. Probably over the period of ’24-’25, coming up in the new year, and I think this stock has got some room to get back to those old highs back in the early part of 2022. That comes in about $180 – 185. That would be a really nice move for this stock over that time. It’s not going to be a straight line, but it could a nice move up towards those high levels by the end of the year.
So that’s Qualcomm, QCOM.
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