This is a long-term weekly chart on QCOM which completed an extended ABCD at the $81 level on Jul'2014. Currently trading near the top of a pennant formation with a clearly defined stop-loss level (ie. upper bound of pennant) with a huge potential if QCOM does break down and start a continuation CD leg to $32. This is a company fighting with its major customer (AAPL), turning down a premium bid from AVGO and shelling out top dollar for NXP. If AVGO walks away. management would have lots to answer for.
Just want to add on, this is a company which went from 30% operating margins to single digit with a shrinking sales base due to its legal fights with its biggest customer, the Donald Chinese trade action and a matured smartphone market.
WellTrainedMonkey
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Thesis seems intact with the pennant appears to be breached. Overall mobile market is not growing and QCOM will probably lose it Chinese customer base thanks to the Donald. The Donald did QCOM no favours by swatting away AVGO and banning sales to ZTE. The Chinese are already responding by blocking the NXP deal so think no love for QCOM.
There will be tactical ups and downs so best trade according.
DaLuke
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Still short?
pippo.lupo.18
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ok..I understand the negative moment but 32$ target??...are you serious?
WellTrainedMonkey
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@pippo.lupo.18, that is what the lines imply if we do get a break down. Don't forget this is a weekly chart so a lot can happen in the space of a year. Take a look at their slowing sales and declining operating margins. It also sounds like you have an anchoring bias when talking about the price objective.
pippo.lupo.18
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@WellTrainedMonkey, simple say that a reduction of 50% for a company that have received a BO of 117 billion and has been declared strategic by the US president seems not so real..but anyway we will see..long life!