Is Qorvo Stock Destined to Revisit $369.00, Its All-Time High?

Qorvo Stock
Credit: iStock.com/gopixa

QRVO Stock: A Bull Market in Development

It was March 2000, in the midst of the dot-com bubble, when Qorvo Inc (NASDAQ: QRVO) stock attained a price tag of $369.00. This price tag marked the all-time high in QRVO stock. From the current price of $72.25, just getting back to this level is equivalent to scaling a mountain.

To put that into context, Qorvo stock set this high in March 2000 and an epic bear market ravaged the share price soon after, as the bubble responsible for this exorbitant valuation finally burst. The share price finally bottomed in 2008, at a measly $2.80, in the midst of the financial crisis. From peak to trough, this investment experienced a devastating loss of 99%, which is essentially a complete loss.

After a loss like this, many would shun such an investment, but I have reason to believe that shunning this investment is ill-advised because much progress has been made since those lows were forged. QRVO stock has begun scaling the mountain towards higher stock prices, and it is currently up 2,480.36% since that fateful day in 2008 when the stock price bottomed.

This move towards higher stock prices has been well-supported by a number of technical indications, and as long as it continues to appreciate, the previous all-time high at $369.00 is not out of the question.

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The following stock chart illustrates the technical developments that have supported the move towards higher stock prices.

Qorvo stock chart

Chart courtesy of StockCharts.com

This QRVO stock chart illustrates that a bullish trend began in 2009 in the aftermath of the financial crisis.

This bullish trend contains the quintessential characteristic that defines all bullish trends, which is a sequence of higher highs and higher lows. This bullish trend is effectively captured using an uptrend line, which was created by connecting the sequence of higher lows.

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This uptrend line not only captures the bullish trend, but it also defines it. As a result, it acts as a level of price support that divides this investment and its ongoing bull market from a potential bear market. As long as Qorvo stock is trading above the uptrend line, I can only assume that higher prices will prevail as the bull market continues to chug along.

The sequence of higher highs and higher lows has been well supported by the MACD indicator, which is highlighted in the lower panel.

MACD is an indicator that uses the crossing of a signal line in order to distinguish whether bullish or bearish momentum is influencing the trading action in an investment. This indicator is very influential because, in order for an investment to stage an advance or a decline, the applicable momentum is required.

The QRVO stock chart clearly labels all the instances when bullish momentum was influencing the stock, via a bullish MACD cross, and it staged an advance as suggested. The same can be said about a bearish MACD cross.

The MACD indicator is currently in bullish alignment, suggesting that higher stock prices are in development.

These technical developments continue to support the notion that a bull market is in development. In order to time the next move towards higher Qorvo stock prices, I am currently watching for the completion of a technical price pattern on the following stock chart.

Qorvo price chart

Chart courtesy of StockCharts.com

This QRVO stock chart has been annotated in order to highlight the cup and handle price pattern currently in development.

This pattern contains two distinct troughs, where the first is much larger than the second. These troughs are a result of a significant level of price resistance that prevents the stock price from advancing.

I am currently watching for a break above this level of price resistance to indicate that a move towards higher stock prices has begun.

These patterns not only indicate that higher prices are in development, but they also provide a much-needed price objective for anyone who is looking to create a trading strategy.

This price objective is obtained by taking the depth of the cup and extrapolating that value above the level of resistance that defined the pattern. Applying this logic to the pattern that is currently in development produces a price objective of $125.00, which is not $369.00, but it is progress towards it. As long as there is progress and the stock price continues to appreciate, one cannot dismiss that Qorvo stock could revisit this level once again.

Analyst Take: 

I am bullish on this stock because the predominant trend is geared towards higher QRVO stock prices. I am awaiting a break above a key level of price resistance in order to suggest that further gains are on the horizon. As long as the indications continue to support higher stock prices, I will have the inclination to believe that the previous all-time high at $369.00—set at the peak of the dot-com bubble—is not out of the question.