Qualcomm Inc. (NASDAQ: QCOM) saw its shares rise by 3.5% on Jan. 6, nearing the $183 level, a significant area of resistance. The stock has been forming a tightening wedge pattern underneath this level, indicating potential for a breakout towards $190 and beyond, supported by a series of higher lows since April.

The recent trading setup for Qualcomm appears different from past resistance points, with a more controlled upward trend over the past nine months. If the stock can cleanly break through the $183 level, the next target is in the $190s, with a potential return to October’s spike high near $205.

Qualcomm’s technical setup is complemented by positive business developments, including expanding partnerships with Google and advancements in AI capabilities for the automotive industry. The company’s new Snapdragon X2 Plus platform promises performance improvements, further strengthening its diversification narrative ahead of its upcoming earnings report in February.

Investors should exercise caution as Qualcomm has a history of setups that fail to deliver sustained breakouts. The $183 level remains crucial, with a decisive and prolonged breakout needed to validate the bullish case. Despite potential challenges, the current wedge formation and positive news flow suggest a breakout may be imminent.

Read more at Nasdaq: Why Qualcomm’s Latest Run at Resistance Has Bulls Paying Attention