Qualcomm (QCOM) | Two Technical Scenarios, How To Get It!
Hi,
I have a few requests about Qualcomm (QCOM) and I would like to some technical scenarios, how to get it.
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks.
The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front-end modules into smartphones, as well as chips into automotive and Internet of Things markets.
Let's start with the first one and it is so-called buy the strength. Currently, it trades between $120 to $130 and there is quite a strong horizontal level to fight with. So to buy it at the current prices would technically be a mistake. As I have said if you don't want to buy it from the bottom or if you don't want to buy the weakness then you have to wait for a confirmation.
QCOM gets its confirmation after it has made a new mid-term higher high (HH). It will give the confidence that investors are interested more than before. The new mid-term higher high gets confirmed after weekly trading closes above $140 (blue line). After that, we have a break above the strong horizontal price zone, new HH, and wait for a retest to occur to get in a bit better prices.
The second scenario is to buy it after it gets a downward rejection from the current price. It is possible because $120 to $130 has been historically a really strong price level and rejection of new lows isn't utopic.
To prepare for a new decline we have to find the strongest price zone below and technically the strongest price zone stays just below $100, okay let's include the $100 there as well :)
The criteria are:
1. The round number, the psychological number $100.
2. 50% drop from the all-time high. Well-known stocks often find support around this criterion and currently, it stays at $97-$98.
3. The most powerful criterion is the old resistance levels become support levels. Basically at the end of 2020, when the breakout and the rally to all-time highs started, it has not retested the breakout area yet. So we have quite a good amount of liquidity there to wait for. These untested areas, combined with other criteria to support it, can play out with a high percentage of the time. Hopefully, this time is not an exception ;)
Summary:
Technically there are two options:
- Wait for a break above $140, to get a confirmed move and wait for a retest around $130.
- If the current "rally" doesn't break the strong horizontal level then wait for lower levels from where we might get that needed liquidity and it stays around $75 to $100.
Do your own research and if that matches with mine then you are ready to go.
Thank you,
Vaido
I have a few requests about Qualcomm (QCOM) and I would like to some technical scenarios, how to get it.
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks.
The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front-end modules into smartphones, as well as chips into automotive and Internet of Things markets.
Let's start with the first one and it is so-called buy the strength. Currently, it trades between $120 to $130 and there is quite a strong horizontal level to fight with. So to buy it at the current prices would technically be a mistake. As I have said if you don't want to buy it from the bottom or if you don't want to buy the weakness then you have to wait for a confirmation.
QCOM gets its confirmation after it has made a new mid-term higher high (HH). It will give the confidence that investors are interested more than before. The new mid-term higher high gets confirmed after weekly trading closes above $140 (blue line). After that, we have a break above the strong horizontal price zone, new HH, and wait for a retest to occur to get in a bit better prices.
The second scenario is to buy it after it gets a downward rejection from the current price. It is possible because $120 to $130 has been historically a really strong price level and rejection of new lows isn't utopic.
To prepare for a new decline we have to find the strongest price zone below and technically the strongest price zone stays just below $100, okay let's include the $100 there as well :)
The criteria are:
1. The round number, the psychological number $100.
2. 50% drop from the all-time high. Well-known stocks often find support around this criterion and currently, it stays at $97-$98.
3. The most powerful criterion is the old resistance levels become support levels. Basically at the end of 2020, when the breakout and the rally to all-time highs started, it has not retested the breakout area yet. So we have quite a good amount of liquidity there to wait for. These untested areas, combined with other criteria to support it, can play out with a high percentage of the time. Hopefully, this time is not an exception ;)
Summary:
Technically there are two options:
- Wait for a break above $140, to get a confirmed move and wait for a retest around $130.
- If the current "rally" doesn't break the strong horizontal level then wait for lower levels from where we might get that needed liquidity and it stays around $75 to $100.
Do your own research and if that matches with mine then you are ready to go.
Thank you,
Vaido
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