Earnings Play: Qualcomm

Look for a bounce off of the 50-day SMA.

Uptrend 3

On Wednesday, after market, Qualcomm (QCOM) is expected to report fourth quarter EPS of $1.19 compared to $0.78 last year on revenue of approximately $5.9 billion vs. $4.8 billion a year earlier. The company makes digital wireless communications equipment and on October 31st, Linksys and the Co introduced the first 5G and Wi-Fi 6 mobile Hotspot in Korea and Hong Kong.  

Looking at a daily chart, in logarithmic scale, Qualcomm's stock price is currently advancing within a short-term rising channel that began to form in August. The RSI is currently sitting over 50 and showing negative divergence. The pattern appears to be showing some weakness since price did not touch the upper trendline before finding support on the lower trendline. In the intermediate-term, price has been using the 50-day simple moving average (SMA) as major support, and the lower trendline of the pattern is very close to the 50-day SMA. Since the bias remains bullish, price will probably hold above the 50-day SMA before continuing to rise towards to the record high of roughly 132.50. If price can breakout above 132.50, then the next target would be 152.75. On the other hand, if price breaks below the lower trendline and the 50-day SMA, it would be a bearish signal. Price would then likely decline to its 115.50 support level, where a bounce could occur. If price fails to be supported at 115.50, then price could slip further to the 108.00 level.       

Source: GAIN Capital, TradingView

More from Earnings


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.