Don't Ignore This Chart!

QualCom Battles Two Key Moving Averages


QualCom has been going nowhere since early March, but a breakout may be in the making as the stock distances itself from two key moving averages. The chart shows QCOM with the 50-day and 200-day SMAs in the 51-52 area. The stock has bounced between 50 and 53 since early March and formed a long triangle consolidation with these moving averages in the middle. The stock caught my eye today because it surged to resistance with a strong move. A breakout here would signal a continuation of the February surge and put QCOM in a long-term uptrend. The indicator window shows the price relative turning up in May as QCOM starts to outperform the broader market this month. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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