Does the blowout in Qualcomm’s ($QCOM) earnings make this a good buy tomorrow? (July 28, 2021)
QCOM ALGN
We are looking at QUALCOMM ( NASDAQ: QCOM ) today; I am also going to show you another one.
First we will look at QUALCOMM ( NASDAQ: QCOM ). This is how the stock is trading after hours. You can see they reported a good number. The stock went up I think, at one point, I want to say 4 percent, I just remember seeing it on the “old crawl” there on CNBC. The stock ran up right away. And so my question is, is QUALCOMM ( NASDAQ: QCOM ) a buy tomorrow? I would say no, at least not as I see it now.
Here’s why, if we look at just the regular hours, this was down here at a pretty decent buy point. Not really just before earnings, which of course this was, but just generally speaking, if I am looking at buying QUALCOMM ( NASDAQ: QCOM ) I might say, Hey, I think this is a good position, close to the 200-day moving average. So sure, it’s all good.
But then when you factor in the after-hours price all it’s really doing is bumping up against this prior level. So it’s kind of really in just the top of the current range, right here, and so I really wouldn’t buy this tomorrow. Now, if it runs up above this level, including even after market high of 147.50, that’s a stock that you could probably buy. It would be kind of a trade but it would work.
This is Align Tech ( NASDAQ: ALGN ), they also reported earnings. And if you just look at regular hours you will see, kind of similar to QUALCOMM ( NASDAQ: QCOM ), the stock was kind of in congestion. This has been a stock that had been in congestion for a long time. If we include the post-market though, this really didn’t have much of a reaction to earnings. It flopped around a little bit but it didn’t really do a whole lot.
This is another one then, that I would kind of put in the same category as QUALCOMM ( NASDAQ: QCOM ). Where I wouldn’t buy it but if it broke out above this level then I think it is poised to move higher. You can see how the stock has zigzagged here but the zigs and the zags are getting tighter and tighter. And that is what you want to see in a stock just before it blasts off. This also has decent volume characteristics it just doesn’t seem, because the volume, it doesn’t feel like it is quite ready to move.
What I am talking about in particular is these 4 down days in a row, a couple of days a little bit higher than average volume. But I would have liked to have seen that a little bit lower even and then the up-volume was definitely low as well. But with this type of volume characteristic I want to see the stock tightening up more. It’s really not that tight, but definitely watch for a line tomorrow and watch for QUALCOMM ( NASDAQ: QCOM ) just don’t reflexively buy them. Make sure that they are telling you that these breakouts are good.
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