Shares of tech giant Qualcomm Inc. (NASDAQ: QCOM) are trading around $155 after a rough couple of weeks. Having started the year reasonably well, the stock has fallen roughly 15% over the past fortnight. It hasn’t helped that the selling pressure has been pretty relentless, as fears mounted that Qualcomm may have missed the boat on the AI transformation, particularly in the major enterprise use cases.
That pessimism has been reflected clearly in the stock’s chart. Last week, Qualcomm’s relative strength index (RSI) dipped below 30, officially entering extremely oversold territory. That alone would be noteworthy, but its rapid bounce back above the crucial 30 level makes this setup particularly interesting. Not only because it suggests that the worst of the selling pressure may already have passed and that buyers are stepping back in, but because of what the stock did the last time this happened.
