QCOM has bullish technical setup post-Amazon news; holding 175 support targets rally to 200-220.

Qualcomm is receiving a significant boost after announcing an expansion of its partnership with Amazon. Yes, this news is very strong. And I love the fact that she regressed a little and then started to recover.

I want to see them maintain the 175 level as a new low , because if they do , I think the rally will reach at least 200, and possibly 220 in a very short period of time. We saw Qualcomm as a powerful breakthrough deal.

So, if they hold the 175 level now and this market gets a small boost this week. I am looking at buy options with an execution price of 185 for September 18th. I love it at 4.50 or less.

Now, I want to take a little risk. So, the stopping points are around 75%, but I think if this move happens, it will easily reach over 200% if the actual breakout occurs . So, there are many variables, but with stability in this range, there is ample room for upward movement with few technical obstacles.

This is one of those hacking opportunities that you should be watching closely here.

Okay, Rick. So, what caught my attention there was the 175 barrier that we are trading right above right now. Do you see a similar level that could potentially be a support level?

Do you also see weak technical resistance regarding a potential breakout?

I think there isn't really much preventing an upward move from what I can see right now. Just to emphasize what we see here through some illustrations. This is a breakout from our recent highs .

We had this shape. Here are two border lines that converge towards each other. Now, we are about to break above this relatively small high we saw here near 179. So, a break above that area would be a notable foothold for buyers here.

The next possible stop would be another relatively high around 196. Then here too is a high point after a downward gap near 220. On the downside , we have had a recurring series of lows here during our range- bound activity around approximately 155.

If we look at our moving averages next, we can see that the picture for these indicators also points to a possible breakout here. All four of our exponential moving averages that we follow are very close together, roughly between 166 and 172.

Therefore, the price rising above all of them, not in one fell swoop, but in a very rapid sequence, is a bullish signal here. Therefore , expect this area to now become a support area.

Our 63-day exponential moving average is the highest and comes right above 172. So expect it to hold at that level. The Relative Strength Index (RSI ) also cooperates with buyers.

We are achieving new relatively high levels . We are above the midline at 50 here. This is what you would like to see so far if you are optimistic about the formation of this momentum indicator.

Our volume profile analysis here shows that we are about to move from a heavy trading zone to a lighter trading zone. You can see our node here between 160 and 180, which contains the control point here near approximately 168.

Therefore, the next station in terms of heavy trading activity will be here, around 198 to 208. So again, there doesn't seem to be much hindering the upward movement if it starts to consolidate here.

Good. Well, I've held up a bit this morning. We are up 4.75 percent at 176.81.