Stock of the day: Qualcomm
16 January 2025
In today's stock of the day, we turn to Qualcomm, which is showing a promising technical setup. Back in mid-December, Qualcomm broke below a key support level at $154, marked with a blue line. This breakout initially seemed bearish, with the movement highlighted by a red rectangle, but it turned out to be a false breakout as the price quickly recovered and climbed back above this critical level.
Positive Test of Support
At the end of 2024, Qualcomm revisited the $154 support and successfully tested it. The bounce from this level confirmed its strength as a support zone and signaled the start of an upswing, shifting the sentiment to positive.
Next Resistance Levels
With the buy signal in place, Qualcomm now faces two significant resistance levels:
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The green resistance at $166, which is the next immediate target for the bulls.
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A breakout above $166 would pave the way for a move toward the orange resistance at $177, offering further upside potential.
Outlook
As long as the price stays above the blue support level, the sentiment remains bullish. A daily close below this level, however, would invalidate the current buy signal and shift the outlook to bearish.