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Technology

Qualcomm Inc (QCOM) Vs. Ambarella Inc (AMBA): Technical Analysis

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The Country Caller takes a look at what the technical indicators say about both the companies

Qualcomm Inc. (NASDAQ:QCOM) and Ambarella Inc. (NASDAQ:AMBA) are two prominent chip makers in recent times. Both these competitors have been trying to give a tough time to each other as Qualcomm prides on its low-powered chips while Ambarella prides on its quality. In a recent article, The Country Caller discussed that Qualcomm was trying to get the chip contract from GoPro, as it offered a low cost alternative to Amberella’s chips. Qualcomm has recently been making its way into the patent world as it has registered a number of patents for Original Equipment Manufacturers.

The Santa Clara based image processing product manufacturer Ambarella Inc. has also been in the limelight in recent times. The share prices have gone up more than 30% in the last two months, while the street also has a bullish stance and expects a TP of $61.16. The Country Caller takes a look as to what the technical indicators say about both the companies.

Qualcomm Inc. currently offers an opportunity to the bulls as technical indicators hint a Neutral position of the stock.  The 14-day RSI is 54.69 currently, which hints a Neutral scenario. Moreover, other indicators such as Stochastic RSI and oscillators suggest a significant potential for the bulls. The average directional index indicates that the current trend is weak. The bull/bear power indicator suggests that Bulls are strong.

Major price level for Qualcomm is $54.57, a break above which would lead to $54.96 and $55.97 levels, respectively. major support exists at $53.56, a break below which would plummet to $52.94 and $51.93 levels, respectively. We maintain a bullish stance on the chip maker.

Ambarella  is nearing the overbought region, but the bulls may still dominate for a few more sessions. The 14-day RSI stands at 67.72, which hints a slightly overbought condition. However, other indicators such as Stochastic RSI and oscillators hint that there is potential for the bulls. The Average Directional Index is 27.91, which indicates a weak trend. The bull/bear power indicator suggests that the bulls still are dominant.

Major price level for Ambarella Inc. is $54.47, a break above which may lead to $55.15 and $56.88 levels, respectively. major support exists at $52.74 level, a break below which may further plummet to $51.69 and $49.96 levels, respectively. we maintain a Neutral stance on Ambarella  the street is highly optimistic on the stock as it expects a TP of $72.

Let’s see if the bulls can dominate in both the stocks today.

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