Constructive Pattern for QCOM (by Mike Paulenoff)

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Let's notice that during the August corrective period, Qualcomm (Nasdaq: QCOM) has carved out a contractionary, coil-type consolidation pattern in the aftermath and atop its prior explosive upmove from the July low at 31.51 to the Aug high at 40. At its deepest corrective price of 37.45 at the 8/16 low, QCOM had retraced only 30% of the entire prior upleg.

As of this moment, QCOM is trading above 80% of all of its action since the July low, which is a very impressive feat, and a bullish sign. The overall picture is very constructive for upside continuation from the coil, which projects to 42.00/50.

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