QualCom has been going nowhere since early March, but a breakout may be in the making as the stock distances itself from two key moving averages. The chart shows QCOM with the 50-day and 200-day SMAs in the 51-52 area. The stock has bounced between 50 and 53 since early March and formed a long triangle consolidation with these moving averages in the middle. The stock caught my eye today because it surged to resistance with a strong move. A breakout here would signal a continuation of the February surge and put QCOM in a long-term uptrend. The indicator window shows the price relative turning up in May as QCOM starts to outperform the broader market this month.
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--Arthur Hill CMT
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