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Descending Triangles do not always break to the downside for NASDAQ:QCOM by lauralea

Descending Triangles do not always break to the downside, especially in a bull market, but this last week has left a chill in the air. Folks are questioning our future economy, inflation and our current leadership’s capabilities to help us out of this hole they appeared to enjoy digging. Well now the hole is there, nice and deep. Are they busy grabbing shovels to fill in this hole? Much of the media has helped dig this deep crater I suppose. So now we are like earthworms ..just dunno.

QCOM seems to follow the Bollinger Bands on the 20 DMA and one may suppose it is not so volatile as to set the bands on an 80 Daily moving average. QCOM seems to play the 20 daily moving average bands which can suggest a lack of extreme volatility . When QCOM has tipped over the top band/DMA 20/ it promptly goes back within the bands. When it breaks the bottom band, QCOM seems to go back inside the bands.

QCOM has pulled back after tipping over the top band, but the bands are contracting.

Contraction can mean a break either way, up or down. And it does appear to be a descending triangle . Tough one. Double bottom with almost a triple bottom so it appears the bulls will not let price go lower than this, for now anyway. I see support above the bottoms but we all know support levels can be broken.

I own this so I hope not. I do not think Mr. Market cares what I hope though )o: There is just no way to know for sure, but I put the targets up anyway…lol..I may be sorry. Use your own judgement on this one, and a conservative trader may wait for a break closer to the bottoms. A short trader may be banking on this to go below the bottoms or to the prior bottom. Short interest is very low. Negative volume is very high.

I am positive on QCOM even though what I wrote sounds a bit dismal. I just have the feeling everything may be a struggle for a while, so I am digging in on stocks I believe in with decent dividends. Monday may be a sunny Monday (o:

A break of the top trendline can be a bullish signal. QCOM has struggled there for a few days. It is amazing how support and resistance really do exist, almost like concrete sometimes. I have learned not to ignore S&R levels from many years ago, as they can come back to haunt you.

If this does break the top trendline of the triangle, there needs to be a confirmed uptrend.

No recommendation

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