In today’s stock of the day, I would like to discuss the current technical setup on Qualcomm, where we are seeing a textbook bearish scenario unfold.
The focal point here is a key horizontal resistance around $153, marked in blue. This level acted as strong support from August 2024 to March 2025. However, once it was broken, it triggered a sharp downside move, sending the price to new lows.
Following that drop, the price entered a bullish correction, forming a wedge pattern. While this initially suggested potential for recovery, we then saw a false breakout above the $153 level (marked with purple). This fake breakout failed quickly, leading to a reversal and renewed selling pressure.
The price has since broken below the lower boundary of the wedge, activating it as a bearish continuation pattern — aligning with the previous trend.
As long as the price stays below the $153 resistance, the bearish sentiment remains in place. The technical target is the April lows around $122, the base of the wedge.