($QCOM) Qualcomm: Hanging Cliffside...
QCOMM chips will be highly implemented into the newest iPhone 15, they are the largest US chip company with exposure to china, and earnings/revenue are forecasted for continued growth into Q3 2024, so whats the problem?
Since March of 2022, Qualcomm's weekly 50 simple moving average had turned from support, to resistance. When the 50SMA of QCOMM had become resistance, it had been retested 3 times with most recently this past July. Each time, we had seen continuing lower highs, and a final base low in late October 2022 creating a demand zone between $101.50 - $107.
After the most recent rejection of the weekly 50SMA back in January 2023, our demand zone cemented itself as of May 2023.
With the demand zone of $101.50 - $107 now having been tested twice as our weekly demand zone, there was an expectancy of yet another retest of the 50SMA... That time has just recently passed this past July.
Now that the 50SMA had been rejected yet again, followed by current price sitting at the volume point of control (dotted white line), there looks to be an imminent retest back to our demand zone.
In addition to these technical indicators, there are a few fundamental and economical challenges ahead. China is on the borderline of deflation, there is a massive global credit bubble, and the Biden administration is currently in an unofficial trade war with China on chips by limiting exports of chips to china constraining global sales. Not to mention the fact that NVDA is at a 40x price-sales ratio, Qualcomm may get caught in the crossfire of these looming factors.
Since March of 2022, Qualcomm's weekly 50 simple moving average had turned from support, to resistance. When the 50SMA of QCOMM had become resistance, it had been retested 3 times with most recently this past July. Each time, we had seen continuing lower highs, and a final base low in late October 2022 creating a demand zone between $101.50 - $107.
After the most recent rejection of the weekly 50SMA back in January 2023, our demand zone cemented itself as of May 2023.
With the demand zone of $101.50 - $107 now having been tested twice as our weekly demand zone, there was an expectancy of yet another retest of the 50SMA... That time has just recently passed this past July.
Now that the 50SMA had been rejected yet again, followed by current price sitting at the volume point of control (dotted white line), there looks to be an imminent retest back to our demand zone.
In addition to these technical indicators, there are a few fundamental and economical challenges ahead. China is on the borderline of deflation, there is a massive global credit bubble, and the Biden administration is currently in an unofficial trade war with China on chips by limiting exports of chips to china constraining global sales. Not to mention the fact that NVDA is at a 40x price-sales ratio, Qualcomm may get caught in the crossfire of these looming factors.
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