QCOM: High-Probability, 1to5 Risk/Reward Setup
QCOM has gapped up into a significant resistance area and is now testing its 200 EMA, a key technical level that often draws attention from institutional traders, who are able to move the price significantly. Then you have the general public FOMO, who are long because last year was 'so good'. This creates an attractive risk/reward trade opportunity.
For Chart Enthusiasts: A potential head-and-shoulders pattern is forming:
Left shoulder: March 2024.
Head: All-time high on June 18, 2024, at $230.
Right shoulder: The current price action, which appears to be breaking lower.
For the Normal People In simple terms: QCOM established a base around $160 in March 2024.
It rallied sharply, reaching $230 within a few months.
Now, 10 months later, the price has returned to where it began, with heavy trading activity as buyers and sellers clash:
Buyers: Believe this level will hold and the price will rebound.
Sellers (like me): Expect this level won’t hold, and the price will drop further.
My Position:
I got short here with a stop-loss just above the 200 EMA and targeting mid to low 150s (that is actually more then 1to5 R/R)
This risk/reward setup is very appealing, especially if we see weakness in the broader market or the semiconductor sector. (That "if" is the key point. If not, i'll be very quick to cover).
Navigate with care,
OnlyTrade2Win.
For Chart Enthusiasts: A potential head-and-shoulders pattern is forming:
Left shoulder: March 2024.
Head: All-time high on June 18, 2024, at $230.
Right shoulder: The current price action, which appears to be breaking lower.
For the Normal People In simple terms: QCOM established a base around $160 in March 2024.
It rallied sharply, reaching $230 within a few months.
Now, 10 months later, the price has returned to where it began, with heavy trading activity as buyers and sellers clash:
Buyers: Believe this level will hold and the price will rebound.
Sellers (like me): Expect this level won’t hold, and the price will drop further.
My Position:
I got short here with a stop-loss just above the 200 EMA and targeting mid to low 150s (that is actually more then 1to5 R/R)
This risk/reward setup is very appealing, especially if we see weakness in the broader market or the semiconductor sector. (That "if" is the key point. If not, i'll be very quick to cover).
Navigate with care,
OnlyTrade2Win.
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