Qualcomm (QCOM) is up about 2.5% today and after nearly a month of sideways digestion off of its Sep 30 high at 45.75 into Tuesday's low at 43.21 appears to have finally resumed its underlying uptrend from the July low at 31.51.

If such a scenario continues to unfold, then QCOM should be in the early portion of a new upleg that projects to the 48.00 area next. At this juncture, only a decline that breaks the Oct 26 low at 43.21 will invalidate the bullish scenario.

We also revisit our Microsoft (MSFT) analysis from yesterday. Based purely on the multi-month developing base-like chart pattern heading into yesterday's earnings report, we noted the price reaction should propel MSFT towards a test of a key resistance plateau at 26.25/40 extending up to 27.00, with the measured optimal targets projecting to 27.00 and then in the vicinity of 28.25.

MSFT results beat estimates, and the stock climbed from yesterday's close of 26.28 to a high of 27.20 this morning.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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