Don't Ignore This Chart!

QCOM's Rough Week Could Provide Opportunity


Technology stocks (XLK) have shown signs of slowing momentum via lower weekly MACD readings while prices have moved higher.  Component industry groups like semiconductors ($DJUSSC) and software ($DJUSSW) have similar momentum issues and that contributed to industry weakness as technology was one of the worst performing sectors last week.  One large cap technology stock that suffered was Qualcomm (QCOM), which fell 2.48% for the week and has fallen close to 10% since topping in late October.  QCOM's chart, however, is very strong technically and the recent weakness looks like nothing more than an intermediate-term consolidation after a strong advance.  Check it out:

The current trading range on QCOM is 63-70 and RSI has dipped close to 40.  Any further weakness sets up a nice reward to risk trade on QCOM.

Happy trading and HAPPY NEW YEAR!!!



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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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