Shares of tech giant Qualcomm Inc. (NASDAQ: QCOM) closed just under $160 on Tuesday, continuing a rebound that has added more than 10% since the first week of August. That rally came after a sharp selloff on earnings, which briefly dragged shares below the lows seen through much of June and July. While the post-earnings dip marked a lower low, the broader uptrend that began in April remains intact.
For bulls, the task now is clear. Qualcomm needs to push higher and, in particular, break through the $165 level. That has been the ceiling for the stock several times this summer, with the bears consistently stepping in to push the stock back down.
Each rejection has only strengthened $165 as a line of resistance and made it even more of a psychological level that’s hanging over the bulls. The good news is that three key technical indicators have turned bullish in recent days, signaling that momentum may finally be shifting back to the buyers.
Let’s jump in and see what they are.
1. RSI Crosses Into Bullish Territory
The Relative Strength Index (RSI) is a popular technical indicator that measures the speed and magnitude of price movements on a scale from 0 to 100. Levels above 70 are considered overbought, while levels below 30 suggest oversold conditions. Readings around 50 tend to mark the midpoint between bearish and bullish momentum.
Qualcomm’s RSI has just crossed above the 50 line, climbing from a low near 35 earlier this month. That shift confirms that momentum is now upward and suggests buyers are regaining control after the post-earnings slump.
Importantly, with the RSI currently sitting near the mid-50s, the stock has plenty of room to run before approaching overheated territory. That balance, clear upward momentum without being stretched, is exactly what bullish traders like to see.
2. MACD Signals a Bullish Crossover
Another key technical signal is the Moving Average Convergence Divergence (MACD) indicator. The MACD tracks the difference between short-term and long-term moving averages of a stock’s price. When the MACD line crosses above the signal line, it produces what traders call a bullish crossover—a classic sign that near-term momentum is outpacing the longer trend.
Qualcomm’s MACD recently flashed that bullish crossover, and it has remained intact in the sessions since. This tells us that, while trading action has been somewhat choppy, the underlying momentum continues to favor the bulls.
The bears who were in control following earnings appear to have capitulated, leaving room for buyers to reassert themselves. With the MACD still in positive alignment, this second technical tailwind looks strong enough to carry shares back toward $165 in the near term.
3. Volume Trends Support Demand
Behind the scenes, volume often tells us how much conviction is behind each move, be it up or down. In Qualcomm’s case, recent trading has shown a clear pattern: green days have been accompanied by higher-than-average volume, while red days have seen lighter activity.
This imbalance suggests that demand is strong whenever the stock is ticking higher, with buyers eager to add exposure. Conversely, there appears to be little enthusiasm to sell when shares take a step back.
That dynamic reinforces the broader bullish setup, since rising prices on higher volume often precede sustained moves. If Qualcomm can continue to consolidate just below resistance while maintaining this favorable volume trend, it strengthens the case for a decisive breakout.
What to Watch From Here
As we’ve noted before, Qualcomm has long been a frustrating stock to follow, let alone to own. But what’s key right now is that three of its key indicators are now pointing in the same direction. That alignment is exciting, but the $165 level remains the critical test.
A strong move through that line, ideally accompanied by elevated volume and a solid close above it, would confirm that the uptrend is alive and the next leg higher has begun.
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The article "3 of Qualcomm’s Technical Indicators Are Suddenly Flashing Green" first appeared on MarketBeat.
