Qualcomm QCOM has been trading in a downside consolidation since trading as low as $101.93 on November 3, 2022. The 2023 low has been $101.47 set on May 25, 2023. Looking at the daily chart below, this could be the low end of a trading range with the high end of the range $139.94 set on February 1, 2023. There are four key levels below this high with a semiannual risky level at $159.81.

The weekly chart shows that the low end of the trading range is $101.93/$101.47 going back to week of November 4, 2022 with the lower level set during the week of May 26, 2023. The week of May 26 was also an upside key reversal. It appears that the upside is to the 200-week simple moving average, or the “reversion to the mean” at $126.52.

Qualcomm has a p/e ratio of 14.05% and a dividend yield of 2.94%, according to Macrotrends. The company beat its earnings-per-share estimate on November 1. QCOM beat EPS estimates in 22 consecutive quarters between November 2017 and February 2023.

The Daily Chart for Qualcomm

The daily chart for Qualcomm goes back two years. The decline in 2023 was down 27.4% from the high of $139.94 set on February 1, 2023 to the low of $101.47 set on May 25.

May 25 was an upside key reversal buy signal as the close of $104.02 was above the high of $103.14 set on May 24. This rally was 27.8% to the high of $132.97 set on July 31, 2023.

Look at the 50-day and 200-day simple moving averages on the chart in blue and green, respectively. There was a death cross on April 4, 2023 when the 50-day declined below the 200-day. This led to the May 25 low of $101.47.

There was a false golden cross on August 4, 2023, which was not a good buy signal given the large price gap lower on August 3. A death cross would soon follow on August 23. The 50-day and 200-day SMAs are now $110.54 and $117.56. The 200-day has been crisscrossed in today’s trading.

The horizontal lines from low to high are the weekly value level at $102.20, the monthly pivot at $110.37, the annual pivot at $121.10, the quarterly risky level at $127.71, and the semiannual risky level at $159.81.

The Weekly Chart for Qualcomm

The weekly chart for Qualcomm is positive with the stock above its five-week modified moving average at $111.34. The stock is below its 200-week simple moving average or ‘reversion to the mean’ at $126.55. The 12x3x3 weekly slow stochastic reading is rising above 20.00 after being oversold. A weekly close above $110.34 with the stochastic reading rising above 20.00 would be a buy signal.

Trading Strategy: Buy Qualcomm on a test of its monthly pivot at $110.37. Reduce holdings on strength to its quarterly pivot at $127.71. The annual pivot at $121.10 should be a magnet.