TA on QCOM: resumption toward Cup edge
the lower boundary of the nice winterlong uptrend is intact
it survived a severe test this week, seeing slippage but restored
the rebuff from 160 saw a steady move to the gathered Moving Avgs at 140
all three (18MA, 30MA, 50MA) are still aligned nicely
they provided support during this week's historic histrionic panicky selloff
we saw a technical breakdown on Tuesday, pitting NazFutures and NazIndexes against Naz leader stocks
it was (as Volt told me) classic Chicago versus NYCity
probably the only time in my life I consistently pull for NYC
so far the Naz stocks are winning
QCOM money flow and volume was somewhat reduced during the selloff (except Tuesday)
QCOM relative strength retreated to midlevel 50 then bounced up
the Ericsson news and general Naz recovery helped push QCOM on a strong Friday move
it appears now that 138-160 is an easy new range
the Cup&Handle from 125 to 160 remains evident very clearly
we have an exaggerated Handle being negotiated now
my guess is that without an extreme week, Q might have formed a Handle in the 145-160 range
143-146 seemed like a natural retreat area for thinking out the Handle
140 represents strong strong underbelly support now
the three Moving Avgs all are hovering around this area
a widening range is now apparent also, allowing for higher highs
a MACD crossover is now in progress
this happens when shorterm and nearterm MovAvgs align more in synch
it could be big, maybe just a routine crossover
the daily stochastics are looking strong now
we have a few more days on this upcycle before stox look extended
money flow is accelerating, MovAvgs crossing, stochastics extending, relative strength improving
I say we are about to test 160 resistance for second time
like early next week
typically the second knocking at the door is also rebuffed
but the rebuff is without the conviction of the first
the first rebuff was hard, taking us down to 140 pronto
this time I think we will chip away at moron sellers
I hope we stay near 160 for a day or two before the mild rebuff
that will eliminate some sell orders
kindalike smacking a ceiling with a hammer fifty times all day long
then you can send a 2x4 stud thru the ceiling on a solid thrust
typically three knocks at the ceiling and we push thru
thrust, yeah, thrust, repeated thrusts
with any followthru and excuse, we shoot up and break thru 160
setting the stage for coincidence with earnings announcement
I see a breakout as days or couple weeks away
nearterm TA target: 190-195
meanwhile Naz is at a critical juncture
expect some selling in 4450-4550 range, now at 4450
all three MA's are pressed into this 100-pt range
too much quick profit to pass up since Tuesday recovery
that should stall some advances for individual stocks
might stall a move for QCOM at 160
I just wanna see Q chip away at moronski sellers at 160
T minus 7 trading days
/ Jim Willie |
