Qualcomm (QCOM) reported earnings on Thursday after-hours. On an adjusted basis, the company reported EPS of $0.99, which beat consensus estimates of $0.86. Revenues came in at $5.08B, which also beat consensus estimates of $4.86B.

Qualcomm noted a decrease in the number of orders from Chinese customers as a result of the coronavirus. The company downgraded the lower range of their earnings outlook for the current quarter. Qualcomm now expects adjusted EPS to be between $0.80 – $0.95 and forecasted revenues to be between $4.9B – $5.7B. Wall Street was forecasting EPS of $0.86 on revenue of $5.1B. Given this background, let’s see what the charts tell us.

 

Qualcomm (QCOM) Weekly and Daily Chart Grid – annotations by askSlim.com

At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

 

askSlim.com Technical Briefing: The weekly and daily cycle analysis suggest that the stock is in a positive pattern. However, QCOM has negative momentum on both the weekly and daily timeframe.

On the upside, there is an intermediate-term Fibonacci projection/target zone from 94.3997.14. On the downside, there is an intermediate-term Fibonacci support zone from 87.2581.73. For the bears to regain control of the intermediate-term, we would likely need to see a weekly close below 79.81.

 

askSlim.com Sum of the Evidence: Qualcomm is in a positive intermediate-term pattern with negative momentum. Given these conditions, we would expect the stock to be range bound for the next several weeks. On the upside, there is a likelihood that the stock will retest the Fibonacci projection zone beginning at 94.39 by the end of February to early March.

 

 

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