Thursday, November 6, 2014

QCOM FIBZ Important Level (down 11.8%)

QCOM down 11.8% today. The image below shows how QCOM behaved previously within a Retracement Zone and where we are now.  The Measured Move(MM) I used was from the high of 81.97 on 7/23 to where I saw the recent move start to reverse. 8/1/2014. When defining  a MM, you have to give it a few days(or minutes if intraday time frame) and then look for future inflection points( based on Fibanocci percentages in my world) and consider actionable trading ideas.
  In this case your 1rst opportunity to take action would have not come for 20 days or so. But if you put on a Short at the 50% Rejection ( 76.90ish) in this case, you see the following week was straight down and profitable. Using a Trailing Stop would have locked those profits. A few weeks later u could have re-entered a short and seen extreme profits. On the flip side, if u were looking for a Buying op., you could have used the Same Draw and had a bid at 69.42, the first downside target or buy zone(based on same MM methodology) you would have nailed the bottom for an extremely profitable move up. Continuing on Take a Look at where the stock(using This Same Draw) Paused after strong move up and was Rejected Hard with a Fundamental Event( the EPS Miss).
  Coincidences?  Or are Fund Managers and/or Massive Automated Portfolios using some similar type of software to give them Sell and Buy levels ?

In Final Analysis here, It would seem that QCOM needs to hold 68ish, or may be some more downside thus testing the 3 year 50% Retracement(66.70ish) for potential support and buying opportunity.

Please Click on the Links for a better larger view-

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