After showing many promising signs over the past quarter, shares of Qualcomm Inc. (NASDAQ: QCOM) are flashing a sudden warning signal as the new year begins. Just before Christmas, the stock’s Moving Average Convergence Divergence (MACD) chart logged a bearish crossover, confirming a momentum shift that has continued into this week. The mega-cap tech stock closed just below $174 on Dec. 30, still up roughly 40% since April, but also down about 15% from the late-October surge that briefly reignited bullish enthusiasm.
Since then, however, Qualcomm has been narrowing into a tight range, and while its long-term fundamentals remain supportive, its short-term technicals are flashing caution. What makes it all the more noteworthy is that the last time this exact setup appeared, the outcome was not kind to the bulls. Could history be about to repeat itself? Let’s jump in and take a closer look.
