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- 1 QCOM stock shows selling pressure; is heading toward the demand zone of $100.
- 2 Sellers have gained momentum and looked aggressive in the past sessions.
Qualcomm Incorporated (NASDAQ: QCOM) stock price shows bearishness, losing the gains below the key moving averages. Recently, QCOM stock gave a breakout above the trendline of $125, but the flight did not last long as the Q2 earnings results came out. The results triggered a gap down, as the stock showed a sharp breakdown. Afterwards, buyers did not hold the momentum and started unwinding their positions resulting in slippages in the previous trading sessions.
However, QCOM stock has stayed in a downtrend over the past months and persisted in forming lower highs and lower lows sequences, facing rejection from the upper trendline, which acted as a barrier to exiting the trend. Moreover, the price action shows that QCOM stock has persisted in facing selling pressure, and buyers have stayed on the back foot. In contrast, sellers have a strong edge and continue to make short positions.
Furthermore, QCOM stock is heading toward the round mark of $100 to retest the demand zone, which might challenge the sellers to break the cluster. Moreover, the stock may wait near the round spot and be in a consolidation phase in the coming months due to the intense pressure from the top.
Now, QCOM stock has an upper trajectory of $120, which, if it breaks, leads to a shift in buying momentum toward the gap of $125 to retest. Conversely, the lower trajectory is near $112, redirecting the stock toward $100 if it breaks.
At press time, QCOM stock price is trading at $115.61 with an intraday drop of 0.82% showing selling pressure on the charts. Moreover, the trading volume remained at 6.767 Million, and the market cap is $129.021 Billion. However, analysts maintained a neutral rating with a yearly target price of $137.60.
QUALCOMM, Inc. develops and commercializes foundational technologies and products used in mobile devices and other wireless products. It operates through the following segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI).
The QCT segment develops and supplies integrated circuits and system software based on technologies for voice and data communications, networking, application processing, multimedia, and global positioning system products.
QCOM Stock Shows Sellers Grip On Daily Charts
On the daily charts, QCOM stock shows sellers’ dominance and slipped below neutrality, showing a negative outlook on the charts. Moreover, the price dropped below the 38.2% Fib level, heading toward the 23.6% Fib level and near the lower bollinger band.
What Technical Indicators Say?
On the short-term charts, QCOM stock indicates there was intense selling pressure in the past trading sessions, and the price slipped below the 200-day EMA, showing that buyers have lost momentum and are in trouble.
The RSI curve slides toward the oversold territory and shows a negative crossover offering a negative outlook on the charts. The MACD indicator showed a bearish crossover, and the red bars on the histogram show the intense selling pressure in the past trading sessions.
Conclusion:
Qualcomm Incorporated (QCOM) stock price showcased selling pressure post the release of Q2 earnings, which were below estimates triggering slippages in the stock. However, a short bounce was pending, which might be shown in the next session to retest the trendline near $120.
Technical Levels:
Support Levels: $112 and $106
Resistance Levels: $$120 and $128
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
