Qualcomm Is On The Rise After Daily And Weekly Key Reversals.

Qualcomm

QCOM
experienced a key reversal day buy signal on May 25 and then a weekly key reversal buy signal during the week of May 26. Longer term, the stock had a golden cross formation on November 16, 2021, which led to a rally to its two-year high of $193.58 set on January 5, 2022. From this high QCOM declined 47.3% to a low of $101.93 on November 3, 2022. From this low the stock rebounded by 37.2% to its 2023 high of $139.94 on February 1, 2023.

Qualcomm has a p/e ratio of 12.87% and a dividend yield of 2.8%, according to Macrotrends. The company missed its earnings-per-share estimate on May 3, 2023 after beating estimates in twenty-two consecutive quarters.

The Daily Chart for Qualcomm

Qualcomm had a golden cross formation on November 17, 2021, then traded to its two-year high of $193.58 on January 5, 2022. The decline that followed confirmed a death cross formation on April 21, 2022. Remember that a golden cross occurs when the 50-day simple moving average rises above the 200-day simple moving average. A death cross happens when the 50-day SMA falls below the 200-day SMA. Note that on April 3, 2023, there was a failed attempt at a golden cross.

The 2023 low of $101.47 was set on May 25. This was a key reversal buy signal as the close that day at $104.02 was above the May 24 high of $103.14. This began the rebound that has stalled so far below the annual pivot at $121.10.

The horizontal lines from bottom to top are the annual pivot at $121.10, the quarterly risky level at $137.06, and the semiannual risky level at $175.00.

The Weekly Chart for Qualcomm

The weekly chart for Qualcomm is positive with the stock above its five-week modified moving average at $114.53. The stock is below its 200-week simple moving average or ‘reversion to the mean’ at $123.10. The week of May 26 was a key reversal as that week’s close of $110.35 was above the prior week’s high of $107.12. The 12x3x3 weekly slow stochastic reading is rising at 32.25 after being oversold below 20.00 during the week of May 26.

Trading Strategy: Buy Qualcomm on a daily close above its annual pivot at $121.10. Reduce holdings on strength to its quarterly risky level at $137.06.