Consolidation After the Pullback

On Thursday we looked at the GLD chart for signs of where next support may come in.

Today, we’re going to take a gander at Qualcomm, Inc. (QCOM).

QCOM manufactures and markets digital communication equipment and products across the globe.

The stock broke out in late July, finding itself outside the upper Keltner channel and overbought. Profit taking came in as the market sold off, but QCOM seemed to show some relative strength, and moved into a consolidation.

Let’s see what the daily chart of QCOM has to say:

While QCOM has seen some profit taking come in, for the past few weeks it’s been more sideways. This is the first sign that QCOM is trying to stabilize.

The second sign is the OBV line. Note how it’s continuing to trend up after dipping from the high level. This confirms stealth buying pressure underneath the surface.

But here’s the thing…

While the foundation may be there, none of it matters without confirmation from a buy signal.

For the time being, this definitely goes on the long side watchlist.

And now it’s that time you’ve been patiently waiting for….

The dad joke of the week!

What do you call a fear of complicated apartment buildings?

…

A complex complex complex.

Trade Smart,

Michael Saul
Analyst, Chart of the Day

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