QUALCOMM (QCOM): Diversified Growth Amid Downtrend

19 Nov

Qualcomm (QCOM) presents an intriguing setup as we believe the wave I and a larger cycle might have concluded. Following its peak, QCOM has dropped nearly 30%, retracing back to the range high. To finalize wave (A), we expect an additional leg down to complete the intra 5-wave structure. The likely target lies between $143 and $133, a range that aligns well with the Point of Control (POC) from March 2020 to now. This adds confluence to its significance as a potential support zone.

Despite the technical setup, we caution that the risk for a long position remains high. A more favorable entry could arise once QCOM reclaims the range, validating the start of a potential bullish wave.

For the current quarter, Qualcomm projects revenues between $10.5 billion and $11.3 billion, with automotive sales anticipated to rise 50% year over year. CEO Cristiano Amon’s strategy to diversify Qualcomm beyond smartphones into chips for PCs, cars, and industrial machines underscores the company’s adaptability.

The next financial results release is scheduled for January 29, 2025, offering further insights into Qualcomm’s trajectory.

The $143-$133 range is a key zone for potential support, bolstered by its alignment with the POC. A decisive break below this zone could invalidate the bullish outlook, while a breakout above the range high may provide an opportunity to long this stock with lower risk. The completion of wave (A) would ideally coincide with a structural turnaround.

We are closely monitoring QCOM for any signs of a reversal. Should the stock confirm a reclaim of the range, we may consider initiating a long position with a more precise stop-loss strategy. Until then, patience and vigilance are essential.