Watching QCOM pays a great dividend but I am glad I sold it, even though I sold it like $13 under the high it ended up making )o: Don't you hate it when you sell too soon?
QCOM is one of my faves, just having a tough time right now. Mr Market has not been kind as of late to many in this sector )o:
There is a falling wedge. Falling wedges slope the opposite way of the overall trend and the 2 trendlines converge at the apex so they look different from a flag. A falling wedge takes at least 3 weeks to form, so it is not a pennant either. A pennant does converge at the apex like a falling wedge, but formation is shorter than a falling wedge and there needs to be a pole for a pennant. If price breaks up and out of this wedge, that is a Bullish signal.
QCOM travelled in a few rising wedges on it's way to the top. Rising wedges are not valid unless the bottom trendline is broken. But it seems like it always happend, eventually.
It is hard on this one to place the first leg up at the right place. There were 3 places to choose from and I chose the middle one . You may disagree. Technical analysis is not an exact science and there are usually subjective components involved. Let me know where you would put the leg up, or the impulse wave?
QCOM is beneath the Ichimoku cloud which is on the bearish side and the cloud ahead is red. The cloud is great to use for an overall look at a security. Some use it for trade signals.
The Ichimoku Cloud , also known as Ichimoku Kinko Hyo, is a versatile indicator that can show support and resistance levels, identifies trend direction, gauges momentum and provides trading signals. There is a baseline (KijunSen) and a signal or conversion line (TenkanSen), which are much like the 26 day and 9 day moving averages (Think MACD ). When the shorter term indicator, TenkanSen (blue), rises above the longer term indicator, KijunSen (red), the securities trend is typically positive. When prices are above the cloud, the trend is up. When prices are below the cloud, the trend is down.
The cloud can be green or red, it can tilt up or down, or it can be thick or thin and there is a meaning to all of this (a thick cloud is often thought to provide more support or resistance).
The bottom and top of the cloud can be support or resistance depending on where price is. The two lines that envelope the cloud, the top and bottom lines of the actual cloud, also have a purpose. They are sometimes referred to as Leading Lines A and B (also known as Senkou lines A&B). When the cloud is red, it is showing you that the Leading Line B is on top which means that price is under the 52 period price average. When the cloud is green, leading line A is on top. When Senkou A is rising and above Senkou B, the uptrend is strengthening. When Senkou A is falling and below Senkou B, the downtrend is strengthening. So there are crossovers that give trade signals plus the positioning of the lines and the cloud give you a sense of how the security is doing in the market.
There is also a "lagging" line, the Chkou span (yellow). A trend is deemed to be upward when the Chikou span appears above the price, and downward when the indicator appears below the price. Many traders watch for the Chikou span to cross with prior prices to signal a potential trend change. The Chikou is below the cloud with price for QCOM, but is almost at the same level as price.
There are five plots that make up the Ichimoku Cloud indicator. Their names and calculations are:
TenkanSen (Conversion Line): period = 9
KijunSen (Base Line): period = 26
Chiku Span (Lagging Span): Price Close shifted back 26 bars
Senkou A (Leading Span A): (TenkanSen + KijunSen) / 2 (Senkou A is shifted forward 26 bars)
Senkou B (Leading Span B): (High + Low) / 2 using period = 52 (Senkou B is shifted forward 26 bars)
Price has filled one gap. There is another unfilled gap below. The top of that gap could be support if price gets that low. The support of the first gap did not hold and price went on to break the bottom trendline of the prior rising wedge.
QCOM is just now approaching the first major rising wedge (lower RW ). Price has pierced the bottom trendline (orangish colored line). Price may be content with that small distance that price fell under the bttom trendline of the lower wedge. AAPL barely dipped out of the bottom trendline of it's own rising wedge, so far anyway. Time will tell.
Strong stock but I am planning to watch for now. No recommendation
The cloud can change or morph, just like the RSI , or a chart pattern. The market is continuously changing, new information being fed in to the market constantly. Mr. Market rarely does the same exact move twice. He will keep you on your toes and throw you a few curve balls if he gets the chance (o:
