Qualcomm Incorporated (ticker: QCOM) continues to exhibit a clear uptrend. Last week, the stock reached a fresh record high of $196.08 and is now looking as if it will form a narrow bullish flag pattern ($196.08-$191.87). Another possible alternative is that price action may also remain within the flag’s boundaries until a retest of support at $188.50 is seen.

You will also see that the Ichimoku Cloud (the difference between the Leading Span A and Leading Span B) is just below the support level, with the upper side at $181.25. We can also see that the conversion line (blue) is above the base line (red), and that price is very much below the Lagging Span, all of which are bullish signals.

Price Direction?

The trend and the Ichimoku indicator are clearly in favour of buyers after reaching another record high last week, and this opens things up for a possible correction back to support at $188.50. However, were a breakout above the bullish flag pattern to be seen before testing the support level, then this barrier may go unchallenged as traders will look to push things further into unchartered territory.

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