There are a couple potential harmonics playing out on Qualcomm. The green pattern pictured is a bullish Cypher, with an entry just below $70. If one were to play this conservatively, taking a stop loss at the lower A leg, there will still be a 3.29 reward/risk ratio if a stop is placed below X.
If the price rises to above $84, we'll be in the pattern completion zone for a bearish Gartley, which presents a potentially profitable shorting opportunity. The reward/risk ratio of a short at this level would be 2.99, if played conservatively by taking profit at the higher C leg.
If the price rises to above $84, we'll be in the pattern completion zone for a bearish Gartley, which presents a potentially profitable shorting opportunity. The reward/risk ratio of a short at this level would be 2.99, if played conservatively by taking profit at the higher C leg.
Comment:
The downsloping channel from C to D of the bearish Cypher has been broken to the upside! It might never get to the PCZ. With the price now at $77.49 ($77.55 after-hours), the next stop could be the PCZ of the bearish Gartley! That's fine - Gartleys are better than Cyphers anyway :)