Overview:
The chart for QCOM displays significant price action over the past year-plus, marked by a strong uptrend followed by a substantial correction/consolidation phase. Your drawings highlight critical demand and supply zones, and a potential bullish trade setup.
Historical Price Action (Light Blue Zigzag):
Early 2023 - Mid 2024: Price moved from lows around 100-110, forming a clear impulse wave that rallied aggressively, peaking around $230 in May 2024. This established a strong bullish trend.
Mid 2024 - Early 2025: Following the peak, QCOM entered a significant correction, characterized by a series of lower highs and lower lows, bringing the price back down towards the 120-130 range. This period also saw the price repeatedly reject from an overhead supply zone (dark red rectangle).
Early 2025 - Current: The price found strong demand again in the 120=125 area, leading to a bounce. The current price action indicates a potential reversal attempt, trying to establish a new uptrend by overcoming recent resistance.
Key Zones Identified:
Major Demand Zone (Lower Green Rectangle):
Price Range: Approximately $110 - $125
Interpretation: This is a crucial support area where significant buying interest emerged, causing the price to reverse multiple times. It represents a strong floor for QCOM, acting as a major accumulation zone.
Major Supply/Resistance Zone (Upper Dark Red Rectangle):
Price Range: Approximately $170 - $178
Interpretation: This zone has consistently acted as strong resistance, with sellers stepping in to push the price down whenever it reached these levels. Overcoming this zone would be a significant bullish signal, indicating a potential shift in market structure.
Current Demand/Entry Zone (Upper Green Rectangle):
Price Range: Approximately $155 - $162
Interpretation: The price has recently shown support in this area, bouncing from the lows seen in May 2025. This zone is being targeted as a potential entry point for a new long position. The dashed horizontal line at $159.12 marks the current price or proposed entry level.
Proposed Trade Setup (Right Side Box):
Your chart outlines a potential bullish trade with clear entry, stop-loss, and target levels:
Entry Price: Above 162. This suggests buying into the current strength after bouncing from recent lows.
Stop Loss (Lower Red Rectangle):
Level: $151.51 (bottom of the smaller red box).
Interpretation: Placing the stop loss below the immediate support of the upper green demand zone (and potentially below a previous swing low) indicates that if the price falls below this level, the bullish thesis is invalidated, and it's prudent to exit the trade to limit losses.
Main Target (Light Blue Dotted Rectangle):
Level: $182.63
Interpretation: This is the ultimate profit target, suggesting a potential move back towards, or even slightly above, the major supply zone (dark red rectangle). This target implies a successful breakout from the recent consolidation and a challenge of prior highs. The dotted line illustrates the projected path towards this target.
Risk/Reward: 1:3
Conclusion:
QCOM is currently situated within a key demand zone after a significant correction. The setup suggests a potential bullish reversal with a defined entry, stop loss, and attractive risk-reward profile targeting a retest of higher resistance levels. Traders should monitor price action carefully for confirmation of strength within the current demand zone and watch for a decisive break above the major supply zone for sustained upside.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
The chart for QCOM displays significant price action over the past year-plus, marked by a strong uptrend followed by a substantial correction/consolidation phase. Your drawings highlight critical demand and supply zones, and a potential bullish trade setup.
Historical Price Action (Light Blue Zigzag):
Early 2023 - Mid 2024: Price moved from lows around 100-110, forming a clear impulse wave that rallied aggressively, peaking around $230 in May 2024. This established a strong bullish trend.
Mid 2024 - Early 2025: Following the peak, QCOM entered a significant correction, characterized by a series of lower highs and lower lows, bringing the price back down towards the 120-130 range. This period also saw the price repeatedly reject from an overhead supply zone (dark red rectangle).
Early 2025 - Current: The price found strong demand again in the 120=125 area, leading to a bounce. The current price action indicates a potential reversal attempt, trying to establish a new uptrend by overcoming recent resistance.
Key Zones Identified:
Major Demand Zone (Lower Green Rectangle):
Price Range: Approximately $110 - $125
Interpretation: This is a crucial support area where significant buying interest emerged, causing the price to reverse multiple times. It represents a strong floor for QCOM, acting as a major accumulation zone.
Major Supply/Resistance Zone (Upper Dark Red Rectangle):
Price Range: Approximately $170 - $178
Interpretation: This zone has consistently acted as strong resistance, with sellers stepping in to push the price down whenever it reached these levels. Overcoming this zone would be a significant bullish signal, indicating a potential shift in market structure.
Current Demand/Entry Zone (Upper Green Rectangle):
Price Range: Approximately $155 - $162
Interpretation: The price has recently shown support in this area, bouncing from the lows seen in May 2025. This zone is being targeted as a potential entry point for a new long position. The dashed horizontal line at $159.12 marks the current price or proposed entry level.
Proposed Trade Setup (Right Side Box):
Your chart outlines a potential bullish trade with clear entry, stop-loss, and target levels:
Entry Price: Above 162. This suggests buying into the current strength after bouncing from recent lows.
Stop Loss (Lower Red Rectangle):
Level: $151.51 (bottom of the smaller red box).
Interpretation: Placing the stop loss below the immediate support of the upper green demand zone (and potentially below a previous swing low) indicates that if the price falls below this level, the bullish thesis is invalidated, and it's prudent to exit the trade to limit losses.
Main Target (Light Blue Dotted Rectangle):
Level: $182.63
Interpretation: This is the ultimate profit target, suggesting a potential move back towards, or even slightly above, the major supply zone (dark red rectangle). This target implies a successful breakout from the recent consolidation and a challenge of prior highs. The dotted line illustrates the projected path towards this target.
Risk/Reward: 1:3
Conclusion:
QCOM is currently situated within a key demand zone after a significant correction. The setup suggests a potential bullish reversal with a defined entry, stop loss, and attractive risk-reward profile targeting a retest of higher resistance levels. Traders should monitor price action carefully for confirmation of strength within the current demand zone and watch for a decisive break above the major supply zone for sustained upside.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.