QCOM breaks back below 20-day moving average
QUALCOMM Incorporated (QCOM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, QCOM finished the week 2.49% higher at 89.60 after edging lower $0.43 (-0.48%) today on low volume, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 89.78, the share confirmed its breakout through the previous session low after trading up to $0.99 below it intraday.
Daily Candlestick Chart (QCOM as at Feb 14, 2020):
Friday's trading range has been $2.01 (2.22%), that's slightly below the last trading month's daily average range of $2.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QCOM.
After trading down to 88.79 earlier during the day, QUALCOMM Incorporated bounced off the key technical support level at 89.25 (S1). The failure to close below the support might increase that levels importance as support going forward. The stock closed back below the 20-day moving average at 89.84. When this moving average was crossed below the last time on February 7th, QCOM actually gained 1.35% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's low at 85.04, downside momentum could speed up should the market break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for QUALCOMM Incorporated. Out of 413 times, QCOM closed higher 59.32% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.11% with an average market move of 1.09%.