Don't Ignore This Chart

QCOM's Rough Week Could Provide Opportunity

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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!!!

Tom


 

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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