Time to Call QCOM?

Today, the news hit the street that AAPL and QCOM are in a small feud of sorts. QCOM was the 4th most discussed companies on StockTwits today.  Today QCOM had an amazing locational gap, opening below the low of the 7/21/16 & 9/12/16 bullish candle/pivot prices.  Meaning, anyone who OWNED QCOM since July was immediately losing money at market open. 

Interesting, that today wasn’t even the beginning. QCOM already had two pretty bearish days on January 17th and Friday on January 23rd. I didn’t have any positions either bullish or bearish on QCOM, but it noticeably hit it’s head against the very strong $68 resistance price level. 

What will continue making this a strong gap is the fact that it occurred on a Monday. So now, the chart has a large gap on both the daily and weekly charts and it’s pretty bearish. Click this link to head over to my chart on QCOM to simply get an idea of what it likely does from here. 

I call this a retest gap. In fact, we even played QCOM bullish today in my day trading room and made out with a small gain. 

QCOM does have earnings, right around the corner and many are anticipating either a gap down (and then the stock fades; meaning it trades higher) or a gap up and then anyone who didn’t bail in the last 2-3 weeks, will be given that opportunity and the stock will roll over a bit more. 

My personal plan is to wait for a small bullish move higher, wait for some weakness and look to play a bearish downside continuation into $48 and from there? Potentially I’ll keep an eye on something longer term.

Thanks so much for reading this write up!I hope you enjoyed it! Until the next time we trade together, remember to LOVE LIFE, live life and TRADE IT!