After coming dangerously close to losing support at $41, the Nasdaq-100 (QQQ) has managed to stabilize. Leading the charge is Qualcomm (NASD:QCOM), up $2.92, after SG Cowen analyst Scott Searle place an 18-month price target of $114 on the stock. Amgen, PACCAR, and Ciena are also helping. The laggards are Comverse Technology, Comcast, and Electronic Arts.
Nasdaq-100 Daily Chart
This tracking stock now looks to be forming a descending triangle. The triple Qs may be able to get a little bounce, but there are three points of resistance, and only one point of support. Resistance takes the form of the recent downtrend, 50- dma, and previous highs at $46.50. That's doesn't mean the Qs can't do it, it's just going to be a challenge. That MACD doesn't look like it wants to help out either.
Qualcomm Daily Chart
SG Cowen's comments have helped push Qualcomm (NASD:QCOM) back above the 50-day moving average. If the stock can keep the momentum going, it could crack the neckline of a head and shoulder bottom. The MACD is also suggesting some upside, but QCOM will need some volume support to crack through resistance around $65.