Qualcomm, Inc. (NASDAQ: QCOM)

Market sentiment: Bearish

QCOM chart looks bullish in daily chart, but current trend is deterring. Reasons are:

• Price is trading below SMA (0,14,Close)
• RSI has been decreased to 43 and CCI is -75.
• Current price is below 50 SMA, it could come down to touch 100 SMA at $42.
• Double top has formed; second top is lower than first top. This is an indication that trend strength has been decreasing.
• Up pitchfork has broken and currently price is following a down pitchfork.

If this stock does not move much higher, then it could be a good time to play bearish hedge trade.
After touching 52 weeks high at $50,82 now this is trading at $46.34. Considering the technical reasons, we could go for August bear-call spread above $52.5. This trade will make 6% return in 4 weeks as long as QCOM is below $52.5. This trade could be risky if company’s earnings beat analyst’s expectation.