Stock of the day: Qualcomm

Stock of the day: Qualcomm
In today’s stock of the day, let’s take a look at Qualcomm — a stock that’s showing a sharp change in sentiment this month. The reversal is particularly interesting because July closed with a clear bearish setup. Back then, the chart displayed a Head and Shoulders pattern, marked with green lines and highlighted with a green rectangle. We also saw a decisive break of the red uptrend line and a drop below the $150 horizontal support. All those elements aligned to give a solid sell signal at the time.

But the market has flipped the script in August. Qualcomm has climbed back above the $150 zone and reclaimed the neckline of the Head and Shoulders pattern. Yesterday’s move was especially important — the price is now pushing higher, erasing the earlier bearish breakdown and effectively switching back to a buy signal in the short term.

From a longer-term perspective, the bullish confirmation is not complete just yet. The key obstacle ahead is the black downtrend line and the yellow horizontal resistance. A breakout above both would trigger a full-fledged long-term buy signal. With the momentum seen since yesterday, the chances of that happening are significantly higher than just a few sessions ago.


 
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