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After Golden Cross, Qualcomm (QCOM)'s Technical Outlook is Bright

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QUALCOMM Incorporated (QCOM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, QCOM's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Over the past four weeks, QCOM has gained 37.2%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

Looking at QCOM's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 9 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Moving Average Chart for QCOM

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on QCOM for more gains in the near future.


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