What Goes Up…Must Go Up
Given the right ingredients in a potential trading setup, you often have to
stick to your guns even when the rest of the world is against you.
While the market picture had looked bleak in the past week, Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating)
continued to display impressive technical signs. Tuesday’s across the board
“crash-up” was a helpful undercurrent for a powerful gain in QCOM.
As pointed out in recent
“Chart(s) of the Day” from Nov.
16 and 29, QCOM had all the ingredients for a good showing, particularly if the
market behaved in a supportive manner. The telltale signs of institutional
buying were evident during the base building. The stock exhibited high relative
strength by moving higher even when the Nasdaq was at its weakest. And, more
recently, a constructive price congestion formed just below its 200-day moving
average.
So–all around–you had a good setup that was all
the more
attractive as positive election news hit the wires.
Until Wednesday,