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After the 2000-2002 bear market, common sense dictated that some of the larger tech firms would all be fine once the dust settled with the many weak/phony dot-com firms rendered bankrupt, but we know from Intel’s multi-year chart that was not necessarily the case. Along with the dead money action in Microsoft and Cisco, it has become easy to dismiss the “old tech” firms as being washed up like Roy Hobbs was by the Quaker Oats guy in The Natural.
Being at the epicenter of the dot-com bubble at the turn of the century, Qualcomm also saw the parabolic run up and subsequent crash like most issues in the Nasdaq focused on technology. Unlike the aforementioned old-tech-dead-money firms, though, the stock has handled itself admirably over the past decade. As you can see on the monthly chart below, Qualcomm has been working through a steady, rising channel making major higher highs and higher lows along the way.
After the bell on Wednesday, Qualcomm saw a highly favorable reaction to earnings, up nearly 10%. I am watching the $60 level closely for a decade-long breakout, and I suspect there is much room above to run. Much of that is predicated on the health of the broad market, but make no mistake that I expect Qualcomm to be one of the old-school generals should the bulls march higher.
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Great analysis Chess and picture as always! I’ll be adding QCOM to my watchlist
looks like a decade long bear flag. what do you see as a price target?
Disagree on bear flag thesis. Above $60, it can go to $80 in short order.
hey nothing wrong with 30 plus percent. thanxs for the reply.