QCOM closes above its opening price after recovering from early selling pressure
QUALCOMM Incorporated (QCOM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
QCOM finished the week 3.87% higher at 78.70 after gaining $0.70 (0.9%) today, outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.97 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (QCOM as at May 22, 2020):
Friday's trading range has been $1.47 (1.88%), that's far below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QCOM.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on February 3rd, QCOM gained 2.83% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
The share managed to close back above the 20-day moving average at 78.20.
QUALCOMM Incorporated shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 81.96 where further buy stops might get triggered. Trading close to March's high at 82.65 we could see further upside momentum if potential buy stops at the level get activated. As prices are trading close to May's low at 74.09, downside momentum might speed up should QCOM mark new lows for the month.
Among the nine 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 406 times, QCOM closed higher 59.36% 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 57.88% with an average market move of 0.99%.