Qualcomm Inc (QCOM) set its 2024 high of $157.98 on January 25. This was shy of its semiannual risky level at $159.81. Longer term, the stock is below its all-time high of $193.58 set during the week of January 7, 2022. From this high, shares of Qualcomm declined and have been trading around its ‘reversion to the mean’ since the week of September 30, 2022. This 200-week simple moving average has been rising from $113.35 on this date to $130.30 this week.
This morning Qualcomm opened at $140.09 then rebounded to $143.91 failing just above its monthly pivot for February at $143.59.
Qualcomm has a p/e ratio of 22.08% and a dividend yield of 2.19%, according to Macrotrends. The company missed earnings-per-share estimates on May 3, 2023. This was the only miss since at least November 5, 2014.
The Daily Chart for Qualcomm
Courtesy of Refinitiv XENITH
The daily chart for Qualcomm goes back one year. The 52-week low was $101.47 set on May 25, 2023. This date was a key reversal buy signal as the days close of $104.02 was above the May 24 high of $103.14. There was a false ‘golden cross’ on August 4, 2023 which was not a good buy signal given the large price gap lower on August 3. A ‘death cross’ would soon follow on August 24.
The horizontal line at $143.59 is the brand-new monthly pivot for February. Above the chart are semiannual and annual risky levels at $159.81 and $174.19. The 50-day and 200-day simple moving averages are $139.52 and $120.97.
The Weekly Chart for Qualcomm
Courtesy of Refinitiv XENITH
The weekly chart for Qualcomm is positive but overbought with the stock just above its five-week modified moving average at $141.12. The stock is above its 200-week simple moving average or ‘reversion to the mean’ at $130.29. The 12x3x3 weekly slow stochastic reading is 84.75 above the overbought threshold of 80.00. A weekly close below $141.12 would be a warning.
Trading Strategy: Buy Qualcomm on weakness to its 200-day simple moving average at $120.97. Reduce holdings on strength to its semiannual risky level at $159.81.