Looking at the technical picture of the Qualcomm Inc stock (NASDAQ: QCOM), the price continues to trade above its medium-term upside support line drawn from the low of January 31st. QCOM is still forming higher lows, but from July 1st, it is struggling to make a higher high, as the stock is getting held down by the 80.50 barrier. That said, the price action could be forming an ascending triangle, which, according to TA textbooks, tend to break to the upside. But until we see that break and ideally a daily close above that barrier, we cannot get comfortable with the upside, hence why we will remain side-lined for now.
If eventually we see that break and a daily close above the 80.50 zone, which is marked by the highs of July 1st and September 5th, only then we will start examining further moves higher. The next strong area of resistance to consider might be the 87.00 hurdle, which is the high of May 15th. The price could stall there for a bit, or even correct back down. But, if the buyers still see value in the stock even at levels slightly above 80.50, the buying might resume and we may see another rise, possibly bringing the price above the 87.00 mark. If so, the next resistance level to aim for could be at 90.30, marked by the highest point of this year, reached on May 2nd.
Our oscillators, the RSI and the MACD, are currently in support of the upside. The RSI is above 50 and points to the upside. The MACD is starting to show signs of a possible move higher, as it currently sits above zero and points to the upside, while climbing over its trigger line.
On the other hand, if the aforementioned upside line fails to withhold, breaks, and the rate falls below the low of October 8th, this could send the price sliding to the 67.15 hurdle, which is the lowest point of August. Slightly below that hurdle lies another potential support zone, at 64.73, which is the lowest point of May.
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