Qualcomm (QCOM) price prediction for February

Shares of Qualcomm (NASDAQ: QCOM) have continued to move higher in January but have struggled to clear the resistance line at $166.60, signalling potential near-term weakness.  

Fundamental analysis: Market share decreasing in China

Qualcomm’s (QCOM) market share in China has plunged by nearly 33% to 25.4% in 2020, as a result of the US ban on Huawei. Shipments to China were impacted heavily, resulting in a tumble of 48.1% compared to a year ago. 

Huawei uses some Quacomm’s chips for its smartphones. Less shipments for QCOM created more space for others with Taiwan’s MediaTek taking advantage. 

On the other hand, Qualcomm can regain some of the lost ground through its 5G chips.

Technical analysis: New all-time high

Qualcomm stock price has soared over 4% this week to trade at a new all-time high of $167.94. However, the price action has rotated lower since making a new record high on profit taking to trade about 0.5% lower today. 

As seen in the chart, the price action has stopped at 127.2% Fibonacci extension line and it is in the correction mode now. The buyers are located around the $160 mark as they want to see the next resistance line above $173 tagged. 

Summary

Shares of Qualcomm soared to record highs despite new reports from China signalling a falling market share for the company in this country.