QCOM / Flag pattern on a great technical context Today we will speak about QCOM on a range situation that we like the context.
What can we see here?
- The price is inside a range since January 2021
- Currently, the price is supported on an ascending trendline + relevant support/resistance zone level.
- Another important aspect of the chart is that we can see a fully formed ABC flag pattern with great proportions.
- If we consider the current ascending channel (which is like an expanding one), we can see the price in the lower range of it. That means that if the bullish movement appears as we expect, we can think of targets on the next resistance level or in the other extreme of the expanding channel.
- We have defined an activation level above "B." In general, terms that are the safer place to execute setups (we avoid A LOT of fakeouts)
- If the price reaches the activation level and then everything goes as Sh@&t. It's important to know where we will say, "hey is time to leave this idea." That place is below "C."
- If the price never reaches the activation level and keeps falling, we will cancel our view if we see a new low
- The expected time of resolution for this idea if everything goes as expected is between 30 and 45 days.
- What about the risk?: ALWAYS BETWEEN 1% TO 2% (Why are you shouting...?) Because this is the most relevant aspect of trading. You MUST protect your capital, and the only way of doing that is having great risk management because bad times will come, always come, and you need to be ready to absorb those stops like a champion.
Thanks for reading, guys! We wish you a great trading week.
