Qualcomm - a nice set up here for Qualcomm, but it will be dependent on the outcome of the earnings tomorrow

Taking a look at Qualcomm ahead of its earnings call tomorrow. Currently, its shares are trading at around $148.89 a share after reaching a high of $157.98 earlier in January. Clearly some profit-taking took place after the resistance proved to overpower the bulls, hence the ongoing pullback. This pullback seems similar to what happened back in the first week of January, the sell-off was followed by several days of consolidation before a surge higher. It could be a similar scenario here once again, a healthy retracement back to for a test of support followed by consolidation and move back up. But of course, this is not guaranteed and will be likely determined by the earnings outcome/guidance rather than technical analysis. Having said that, the set up is there. The support sits along the upper green trendline, reading $146.98. A break below would not necessarily suggest a reversal trend but perhaps see a further decline towards the support of $133.21. The key resistance in focus is the high of $157.98, a break above it would then shift the focus to $162 and then maybe even $170. Looking at the technical indicators, they seem to be portraying a more negative outlook than the chart and price itself. The MACD seems like it could turn negative with a slight formation of a bearish divergence. The RSI has also declined rapidly to 59 from 74. However, with the earnings tomorrow investors are taking more caution, which is understandable. Therefore, price forecasts should never be determined by only utilising one factor, i.e. technical analysis.