Qualcomm (QCOM)-EW Analysis
After its IPO in December 1991, Qualcomm began a strong impulsive move, forming green wave 1 followed by green wave 2. This 1–2 setup established a major structural foundation for the market.
After completing green wave 2, Qualcomm regained bullish momentum and initiated the first bullish fractal within dark blue wave 1. Once this wave 1 was completed, the stock entered an extended corrective phase, developing dark blue wave 2. This correction ended in the form of a truncation, after which the market was able to rebuild sustainable bullish momentum.
Following the breakout from this prolonged corrective phase, Qualcomm formed a strong bullish dark blue wave 3, followed by a shorter corrective wave 4, and then completed the cycle with a final impulsive move in wave 5. With the completion of the dark blue cycle, the stock established bullish light blue wave 1 of the higher-degree cycle.
Since the completion of light blue wave 1, Qualcomm has entered a bearish phase in order to form light blue wave 2.
To identify the potential end of the current correction, we have defined a Fibonacci retracement zone where we expect light blue wave 2 to complete and Qualcomm to regain bullish momentum.
This zone ranges between:
- 61.8% at $95.43
- 78.6% at $58.65
- 88.7% at $36.54
From our perspective, this area represents a prime long-term buying and accumulation opportunity. If the market validates this zone and forms a structural bottom, we anticipate a renewed impulsive move to the upside, initiating bullish light blue wave 3.
For this upcoming wave, we are able to project realistic price targets that we expect Qualcomm to reach over time. However, confirmation is required first — the Fibonacci retracement zone must be tested and validated, and the correction must show clear signs of completion.
Should any structural changes occur or the Fibonacci zone become activated, we will update you immediately.
Kind regards,
Monalytics
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