Technical Analysis: Qualcomm Inc.

Apr 14, 2021 | Trading Qualcomm using Swing Trading Strategies

Qualcomm Inc. (QCOM)

Entry Price/Stop Price/Target Price- 135.75 / 133.03 / 146.61

Time Frame: 4-5 Weeks

Company Description
Qualcomm Incorporated is a global pioneer in broadband applications such as 3G, 4G, and 5G. Qualcomm Incorporated is the parent company of Qualcomm's licensing firm, QTL, as well as the vast majority of the company's patent portfolio. Qualcomm Technologies, Inc., a Qualcomm Incorporated subsidiary, is responsible for substantially all of Qualcomm's manufacturing, research, and growth operations, as well as substantially all the company's products and services divisions, including its semiconductor division, QCT.

Thesis
Qualcomm (QCOM) paid $1.4 billion for NUVIA at the beginning of this year. Now with the acquisition delivering major increases in performance and energy consumption for 5G computing, we're starting to see price appreciation. Additionally, policy has an important part to play in the recent growth of QCOM after President Biden initiated a $2.3 billion capital package for the space.

Technical Analysis
As of 04/12, QCOM has begun to find new support, emerge from an inverted head and shoulder trend, and regain market momentum. The new support is being formed at 135, and the 100-Day MA has passed over the 150-day MA (golden cross) reinforcing that the bullish trend we've seen is continuing. Our profit margin of 8% is below the three-month ATH, which is reachable if the momentum persists, and with good reports from the White House on the funding bill on the way, the stock is expected to continue to rise to new highs. We're seeing signs of turnaround right now, and if they persist, now will be a perfect time to get a spot in the market.

Weekly Swing Trades

PNRG (Prime Energy)

October 2, 2022

Entry Price:

80.62

Stop Price:

76.85

Target Price:

88.04

Time Frame:

1 Week Hold

Expecting a short-term bump after a recent OPEC+ announcement regarding the a supply constraint to oil. The constraint would result in ~1M less barrels of oil per day, which should cause a price jump. Low RSI and bouncing off our 250 day moving average, both hallmarks of a good swing trade.

DV (Doubleverify)

October 2, 2022

Entry Price:

27.75

Stop Price:

26.75

Target Price:

29.00

Time Frame:

3 Week Hold

Using our moving averages heavily on this swing trade, look for continued strength as we try to notch out a 6-8% gain. Specifically, we are taking advantage of of a recent cross over in the 50 day moving average. Last week closed down, so wait for confirmation of a reversal.

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Market Performance- Week of 09.25.2022

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Weekly Review

Market Performance- Week of 09.25.2022

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SBUX (Starbucks)

SBUX (Starbucks)

Entry Price:

85.00

September 11, 2022

Price at High:

89.90

Return for Members:

5.76%

Timeline:

2 Month Hold

Strong momentum over the last few weeks. Watch for a mean reversion, but if moving averages stay consistent look for an early play to open the week.

PNRG (Prime Energy Resources)

PNRG (Prime Energy Resources)

Entry Price:

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Price at High:

100.00

Return for Members:

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PNRG had a drawdown to historical levels of support (around the 100 day moving average). Looking to make an entry in the coming days as we also have macro tailwinds with the energy crisis in Europe.

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PYPL (Paypal)

Entry Price:

87.00

August 28, 2022

Price at High:

103.00

Return for Members:

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Timeline:

4 Week Hold

Playing off the dip in June, we're starting to see momentum as the 50MA is crossing over the long-term averages. Look to for momentum to continue and an early entry on Monday.

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