QCOM Wyckoff Distribution?
Toward the end of last year, I posited the idea that QCOM was executing a "fake-out break-out". Bears get trapped after a failed consolidation then get short squeezed higher. Instead of trading to new highs, QCOM has only consolidated in a range near ATH. This leads me to believe that distribution is occurring near ATH. This is a major piece to wyckoffs price cycle.
I have marked off the elements of the distribution cycle that I believe we have seen so far. The remaining elements are a final upthrust (optional) and last point of supply, which traps bulls in a false breakout and converts the last of a long position into a short position.
Set up:
The pattern breaks down when the Auto Reaction support zone is broken. I am looking to take a short below that level (~$170). I will be looking for a break below the 100 sma as well as RSI to cross below 50 and MACD to perform a bearish crossunder.
Risk Management
My price target is near 140. It happens to be the gap fill and the fib extension. That is about a $30 drop from current levels. I believe a $3-5 stoploss is appropriate for this kind of swing trade.
I am sitting on my hands until I get confirmation that a breakdown will occur.
I have marked off the elements of the distribution cycle that I believe we have seen so far. The remaining elements are a final upthrust (optional) and last point of supply, which traps bulls in a false breakout and converts the last of a long position into a short position.
Set up:
The pattern breaks down when the Auto Reaction support zone is broken. I am looking to take a short below that level (~$170). I will be looking for a break below the 100 sma as well as RSI to cross below 50 and MACD to perform a bearish crossunder.
Risk Management
My price target is near 140. It happens to be the gap fill and the fib extension. That is about a $30 drop from current levels. I believe a $3-5 stoploss is appropriate for this kind of swing trade.
I am sitting on my hands until I get confirmation that a breakdown will occur.
Trade fermée: cible de profit atteinte
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.