Qualcomm traders are preparing for a tough opening bell in 2 hours time as pre-market trade emphasizes yesterday's bearish bias. An influx of sellers pushed the 5G mobile wireless technology developer to session lows around $112.6 while establishing a $112.6 to $116.82 session range yesterday.
Initial Jobless Claims data from United States will be released today at 12:30 UTC with analysts expecting a decline to 240,000. Potentially significant price fluctuations in Qualcomm are expected to follow.
United States Crude Oil Inventories released earlier showed a marked improvement to -1.28 million from the preceding data of -5 million, but fell short of the -1.1 million figure forecast by a consensus of market analysts.
While price action maintains a negative bias, United States Interest Rate released yesterday at 18:00 UTC with a figure of 5.25, while the previous figure was five. United States ISM Non-Manufacturing PMI (Apr) came out at 51.9, while a consensus of analysts was expecting 51.8.
Visual analysis of Qualcomm's chart shows that Qualcomm fell below the $111.35 support zone and moved $1.48 beyond it; the next level of support with significant buyer interest is estimated at $109.86. Trend-following investors would be interested to note that Qualcomm made an initial break below its 10 day Simple Moving Average at $116.32, a possible indication of a forthcoming negative trend. Bearish sentiment was sufficient to push prices below the known Fib level of $113.92 serving as intraday support. According to asset volatility analysis, Qualcomm's lower Bollinger Band® is at $111.19, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, the technical outlook suggests Qualcomm is likely to remain muted for the immediate future, with no clear-cut direction.
Qualcomm was not the only decliner in the technology sector; AMD went down 9.22%, closed at $89.91. Adobe went down to $345.25, losing 6.35% after it closed at $368.66 yesterday.
On the other hand, positive performances could be seen by looking at other technology stocks as Intel was up 2.96%.
Looking ahead, ongoing depreciation may be prolonged as United States Non Farm Payrolls projected to come out at 180,000 — worse than previous data of 236,000; data will be released tomorrow at 12:30 UTC. United States Initial Jobless Claims projected to decline to 240,000 while previous data was 230,000; data will be released today at 12:30 UTC. Tomorrow at 12:30 UTC data for United States Unemployment Rate will be released, with an expected decline to 3.6 from the preceding figure of 3.5.
Pointing downwards for around a month. The 5G mobile wireless technology developer is now trading 16.04% below its 3-month high of $155.86.
