Qualcomm (NASDAQ: QCOM) is in the process of setting up a bullish flag pattern. After a three day vertical move last week on increasing volume, it has spent the last three sessions consolidating its gains on declining volume. Notice that the consolidation is in the upper range resulting in a bullish flag pattern.Today's session closed strong and therefore this pattern could break anytime. The next level of resistance is last Friday's high, followed by the two levels noted above. Long time readers may remember that I used to refer to this type of setup as a three day consolidation breakout. As always gap ups invalidate the setup and should be traded like a gapper trade. Basically, we are looking for a high volume break of the flag but we are cautious in the current market environment.
Good Trading!
1 comment:
Hey Glenn,
I'd like to see QCOM come back into its base on the open ($43.00). So far it seems to favor Friday's high ($43.50). You could scale in if you are not sure. I will wait until the open. These gappers often do a head fake in the 10 minutes prior to the open.
KLAC is not dipping at all so far. I would look to buy the first pullback to the 10 period ema on the 1 minute timeframe after the open. You know the rules.
Good trading.
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