SIA Chartsā relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company growth.
Today, we are going to look at Qualcomm Inc (QCOM) which we last commented on the December 21, 2023, edition of the Daily Stock Report. QCOM first entered the Green Favored Zone of the SIA S&P 500 Index earlier that week on December 15th at a price of $143.13. The shares have remained in the favored Zone ever since and the closing price of the shares is now at $202.17 representing at 41.2% price increase in a little over 6 months time. In contrast, the S&P 500 Index is up 15.9% in the same time frame. Yesterday, QCOM finished in 13th position, up 6 spots on the month and up 44 places in the last quarter.
In looking at the attached Candlestick chart of Qualcomm Inc, we see that the shares ultimately found its bottom back in October of 2022, May of 2023 and October of 2023 forming a nice triple bottom pattern. The accumulation phase took over with a strong uptrend forming since then. A pattern of higher lows and higher highs has materialized which is still intact today. The shares really took off when it broke above a neckline at the $130.00 area back in December.
After such a parabolic move, the shares have pulled back earlier this month as a potential sign of near-term exhaustion. Support can be found at the $180.00 area which it achieved back in late 2021. Resistance is at its all-time highs near the $215.00 to 230.00 range. It will be interesting to see going forward if the shares can break past the $215.00 to $230.00 resistance level and march onto new all-time highs.
In the attached Point and Figure chart at a 2% scale, we see the shareās strong uptrend from 2020 to its peak of $182.00 back in December of 2021. Then the shares reversed course, and the one-year distribution phase took over from December 2021 to December 2022. At that time, we see the shares found support twice in December 2021 and May of 2022. Then finding further support a little higher three times at the $102.00 area in late 2022 as well as September and November of 2023. The shares changed trend to the upside since then with a very strong move between December of last year up until earlier this month. With such a strong move in a short period of time, the shares pulled back into a column of Oās and now is approaching a near term support area of $197.17 based on a 50% retracement. Further support below that, is at $178.59. On the upside, resistance can be found at its 3-box reversal of $217.70 and, above that, its recent all time high at $231.02. The shares currently still exhibit at bullish Double Top pattern. With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, QCOM is exhibiting short-term strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
