QCOM finds buyers around 63.25 for the third day in a row
QUALCOMM Incorporated (QCOM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
QCOM ended Thursday at 68.98 gaining $5.90 (9.35%), strongly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 66.96, QUALCOMM Incorporated confirmed its breakout through the previous session high after trading up to $2.69 above it intraday.
Daily Candlestick Chart (QCOM as at Mar 26, 2020):
Thursday's trading range has been $6.40 (10.0%), that's slightly above the last trading month's daily average range of $5.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QCOM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 67.98 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, QCOM actually lost -11.14% on the following trading day. Prices are trading close to the key technical resistance level at 73.34 (R1). The share found buyers again today around 63.25 for the third trading day in a row after having found demand at 62.46 in the prior session and at 62.19 two days ago.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for QUALCOMM Incorporated. Out of 118 times, QCOM closed higher 63.56% 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 54.24% with an average market move of 0.16%.