QCOM closes below its opening price unable to hold early session gains
QUALCOMM Incorporated (QCOM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
QCOM ended the month 15.79% higher at 105.61 after losing $1.58 (-1.47%) today, strongly underperforming the Nasdaq 100 (1.78%). Trading $2.09 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 24th, QCOM actually gained 4.29% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (QCOM as at Jul 31, 2020):
Friday's trading range has been $3.24 (3.07%), that's above the last trading month's daily average range of $2.48. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for QCOM.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After having been unable to move above 107.69 in the prior session, QUALCOMM Incorporated ran into sellers again around the same price level today, failing to move higher than 107.75.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 93.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for QUALCOMM Incorporated. Out of 69 times, QCOM closed lower 57.97% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 62.32% with an average market move of 0.02%.