History Suggests This Apple Supplier Could Keep Dropping

QRVO has been in a channel of lower lows since August

Managing Editor
Nov 27, 2018 at 3:16 PM
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Apple (AAPL) is in the news today, after President Donald Trump threatened a 10% tariff on iPhones and laptops imported from China.  As a result, Apple suppliers such as Qorvo Inc (NASDAQ:QRVO) are lower today, down 0.5% to trade at $65.34, at last check. What's more, the worst could be yet to come for QRVO heading into December. 

According to Schaeffer's Senior Quantitative Analyst Rocky White, Qorvo is one of 25 S&P 500 Index (SPX) stocks with the worst December returns, looking back 10 years. QRVO has racked up the steepest average loss of 5.11%, and has ended the month higher less than half the time.

Daily Stock Chart QRVO

On the charts, Qorvo stock has carved out a channel of lower lows since early August, culminating in an annual low of $61 on Nov. 13. Plus, recent rally attempts have ran out of steam near $66 -- home to the stock's mid-November pre-bear gap lows and its year-to-date breakeven point. 

Should QRVO's struggles continue, there is ample room aboard the bearish bandwagon. While short interest increased by 10% in the most recent reporting period, the 6.78 million shares sold short is roughly half off its 2017 peak and represents a meager 5.4% of the security's total available float.

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