Ad
Ad
Ad
Technology

Qualcomm Inc (QCOM) Vs Ambarella Inc (AMBA): What the Technical Analysis Suggests

Pinterest LinkedIn Tumblr

The Country Caller takes a close look at what the technical indicators say about Qualcomm and Ambarella

Both Qualcomm Inc. (NASDAQ:QCOM) and Ambarella Inc. (NASDAQ:AMBA) have been in the limelight in the recent times. Ambarella posted strong financial results in the recent quarter, due to which its share prices jumped and are rallying since then. Meanwhile, Qualcomm shares have been going down since last Thursday, and the possible reason appears to be how the iPhone 7 contract was awarded to Intel. The Country Caller takes a close look at the current standing of both companies with regards to technical indicators.

Qualcomm appears to be in the overbought region as per the technical indicators. The 14-Day RSI currently is 54.11, which is neutral and indicates that further buying is possible. However, the stochastic RSI and MACD suggest that the stock is currently in overbought and that bears may soon dominate. The important price level for Qualcomm’s stock is $53.77, if it breaks the level then it may further lead to $54.11 and $55.10 levels, respectively.

However, a break below $52.78 may further take it down to $52.13 and $51.14. The current indicators show that the bears are gaining momentum and may gain strength in today’s session.

Ambarella also appears to be in the overbought region as per the technical indicators. The 14-day RSI currently is 79.50, which highlights that the bulls have been strong for quite a while now. Other indicators, such as Stochastic RSI and oscillators, also confirm an overbought scenario. These points indicate that the bear would soon gain power. The important price level for Ambarella Inc.’s stock is $53.4, breaking which would further lead it towards $54.03 and $55.84 levels, respectively. However, a break below $51.59 may further take it down to $50.41 and $48.60 levels.

We recommend investors not to take fresh positions on both and wait as a correction seems due for both of them. Let’s see how these companies perform in today’s session.

Comments are closed.