The exact same setup is shaping up in shares of
(QCOM - Get Report) right now.
This $104 billion mobile device chipmaker hasn't enjoyed the same bullish run that Oracle has, but it is looking "toppy" nonetheless right now. This stock's right shoulder still has some time to form before this pattern is considered complete from a textbook standpoint, but that shouldn't stop sellers and shorts from piling in if the $61 neckline gets broken.
>>4 Tech Stocks to Trade (or Not)
adds some extra confirmation to this setup. Our go-to momentum indicator, 14-day RSI, had been in an uptrend since all the way back in late May, but the uptrend broke late last month. Since then, RSI has made lower highs, indicating the start of a new downtrend. Since momentum is a leading indicator of price, that's an important signal to watch.
For another take on Qualcomm, it shows up on recent lists of
4 Chip Stock Apple Fans Should Love
5 Stocks to Store Away for 5 Years