A quick look at yesterday: in yesterday's bearish session, the wireless technology company shed around 4.17% in quick fashion, found support around the $116.08 level and finally closed at $116.64. In contrast, the day's events followed Wednesday's session in which the stock closed at $121.71.
Data from United States concerning Core Retail Sales was released yesterday at 13:30 UTC. Newly published figures emphasized continued decline from last month's figure of 1.2% to -0.2% this month. United States Retail Sales published yesterday at 13:30 UTC came out at -0.6%, falling short of the -0.1% projections and continuing its decline from the previous 1.3% figure.
While price action maintains a negative bias, United States Philadelphia Fed Manufacturing Index (Dec) came out at -13.8, while a consensus of analysts was expecting -10.
Qualcomm made an initial break below its 50 day Simple Moving Average at $118.07, a possible indication of a forthcoming negative trend. After descending below strong Fibonacci support at $117.56, market bears have earmarked $114.95 as the next downside target. On the other hand, note that Qualcomm could begin to recover as it approaches significant support, now $1.67 away from $114.97. Dipping below could be an indication that further losses are ahead. Bollinger Bands® shows an indication of recovery: the lower band is at $115.65, a low enough level to, generally, suggest that Qualcomm is trading below its fair value.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for Qualcomm.
Qualcomm was not the only decliner in the technology sector; IBM closed at $142.36 (down 5%). Apple went down 4.69%, closed at $143.21. Intuit lost 5.34% yesterday and closed at $396.53.
The stock has been trending positively for about a month. Qualcomm hit a significant low of $103.88 around a month ago, but has since recovered 17.16%.