QCOM finds buyers again around 62.46
QUALCOMM Incorporated (QCOM) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
QCOM finished Wednesday at 63.08 losing $2.38 (-3.64%), notably underperforming the Nasdaq 100 (-1.11%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (QCOM as at Mar 25, 2020):
Wednesday's trading range has been $4.50 (6.83%), that's slightly below the last trading month's daily average range of $5.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QCOM. Prices continued to consolidate within a tight trading range between 59.04 and 67.98 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 67.98 (R1). After having been unable to move lower than 62.19 in the prior session, the share found buyers again around the same price level today at 62.46. The last time this happened on March 19th, QCOM actually lost -6.29% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 67.62 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 59.11 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for QUALCOMM Incorporated. Out of 568 times, QCOM closed higher 53.52% 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 55.28% with an average market move of 0.34%.