Qualcomm Jumps 4.13% on Heavy Volume as Technicals Signal Bullish Reversal

Qualcomm (QCOM) rose 4.13% on the latest trading session, marking its second consecutive day of gains with a cumulative 5.32% advance over this period. This upward momentum occurred on elevated volume of 10.57 million shares, suggesting strong buying interest near current levels.
Candlestick Theory
Recent price action reveals a bullish reversal pattern forming near the $147 support zone. The June 5th session printed a hammer candle (low: $147, close: $147.56) after testing the $147-$145 support area from early June, signaling seller exhaustion. This was confirmed by two consecutive white candles, including the latest session’s 4.13% gain that closed near its high ($155.41 vs. high: $156.12), indicating persistent buying pressure. Immediate resistance resides near $156.50, aligning with the June 9th high, while stronger resistance looms at the $162 level from the May swing high. The $147-$145 zone now serves as critical support.
Moving Average Theory
The 50-day moving average currently trending near $154 provides dynamic support, with the price having rebounded above it decisively during the latest rally. More significantly, the 200-day moving average near $162 poses substantial resistance—a level Qualcomm has not sustained above since mid-April. The 100-day average near $152 aligns with recent support tests and reinforces this barrier. While the 50-day/100-day averages show neutral alignment, a sustained break above $162 would confirm a long-term bullish shift. The converging averages between $152-$154 now form a pivotal inflection zone.
MACD & KDJ Indicators
MACD exhibits a bullish crossover with both the signal line and histogram turning positive, reflecting accelerating momentum. This aligns with KDJ oscillators where the K-line (78) and D-line (70) are rising after exiting oversold territory, though approaching overbought thresholds. While KDJ’s J-line at 94 suggests near-term exuberance, MACD’s upward trajectory implies room for continuation. No bearish divergence is apparent, though KDJ’s proximity to overbought territory warrants monitoring for potential consolidation near resistance zones.
Bollinger Bands
Bollinger Bands have expanded meaningfully after a contraction phase in early June, signaling resurgent volatility. Price currently trades near the upper band ($156) after breaking through the middle band (20-day MA at $154), reflecting strong bullish momentum. The widening bands support continued directional movement, though a touch of the upper band may precede short-term consolidation. Support now resides at the middle band, with critical stability near the $150 lower band.
Volume-Price Relationship
The latest rally’s credibility is validated by substantial volume expansion, with the June 9th session recording 10.57 million shares traded—a 48% increase over the prior session. This follows a volume-supported rebound from the $147 support zone on June 5th-6th. Notably, recent distribution phases (late May’s decline to $147) occurred on lower volume than accumulation phases (early June surge), confirming stronger institutional buying interest. Volume patterns affirm the current uptrend’s sustainability.
Relative Strength Index (RSI)
The 14-day RSI at 64 reflects building momentum without yet signaling overbought conditions (above 70). It has rebounded sharply from 42 on June 5th, confirming strengthening buying pressure. While the current reading suggests near-term upside potential remains, it approaches the cautionary threshold. Traders should monitor for divergence if prices near the $162 resistance without corresponding RSI strength, which could signal exhaustion.
Fibonacci Retracement
Applying Fibonacci retracement to the April-June decline (swing high: $162.10 on April 26; swing low: $135.21 on May 1), key levels emerge. The recent consolidation occurred around the 50% retracement ($148.65), which now acts as support. The 61.8% retracement at $152.50 aligns with the early June resistance breakout zone. The latest rally faces a critical test at the 78.6% level ($156.80), which converges with the June 9th high. A decisive break above this level may target the $162 swing high, while failure could revisit the $152.50 confluence support.
Confluence Summary
Technical alignment strengthens near $147-$152, where candlestick support converges with the 100-day MA, Fibonacci 50% retracement, and Bollinger Band lower boundary. Bullish momentum is confirmed by MACD/RSI trajectories and volume validation. However, formidable resistance between $156.80-$162—containing the 78.6% Fibonacci, 200-day MA, and prior swing high—may trigger profit-taking. Sustained closes above $156.80 would signal breakout continuation potential toward annual highs, while failure may retest $152 support.