Qorvo, Inc., which specializes in radio frequency and power management solutions, saw a drop of 7.52%, ending the day at $81.50. This decline signals the failure of a bull flag pattern identified in December, raising worries about the crucial support level at $77.88. If the support at $77.88 breaks, the price could fall further to $71.17. A daily topping tail on October 28, 2025, indicated this downturn, breaking through a long-term declining trendline from 2021. Even with this bearish trend, Qorvo is nearing its fourth attempt to break the 2021 trendline, which historically increases the chances of overcoming this resistance. The weekly chart shows that Qorvo has been consolidating in a bullish manner since June 2025 but remains below the declining trendline. This consolidation suggests a possible breakout, but it’s vital to maintain the $77.88 support level. Breaking below it could jeopardize the bullish structure developed since June 2025. However, if the support holds, the stock might gain momentum to break through the declining trendline. Given the recent failure of the daily bull flag pattern from December 2025, we can expect ongoing downward pressure in the coming weeks. The significant 7.5% drop confirms this weakness, making bearish positions seem appealing. Traders might consider buying puts that expire in February or March 2026, focusing on the critical support at $77.88. This technical decline is also backed by weakening fundamentals in the semiconductor industry. Recent reports following the Consumer Electronics Show predict a slowdown in global smartphone shipments for the first half of 2026, a key market for Qorvo. Additionally, short interest in the stock has risen to 4.8%, indicating that larger investors are preparing for a decline. The $77.88 level is now the most crucial price to monitor. Implied volatility has surged after the sharp sell-off, making options pricier. Therefore, selling out-of-the-money call credit spreads above the $83 resistance may be a wise way to take advantage of the high volatility and bearish trend. If the price stabilizes above $77.88 for several sessions, it may signal an opportunity to reduce bearish exposure. If the stock drops below $77.88 with strong volume, it would indicate that the long-term bullish consolidation that started back in June 2025 is at risk. This could lead to a more substantial drop toward the next major support at around $71.17. In that case, we would consider adjusting our existing bearish positions to this new, lower target. However, we should also be cautious about defending the $77.88 support line. A robust bounce from this level would signal that the larger weekly bullish pattern is still intact. If we observe such a reversal, it would be a clear sign to close any short positions and possibly open a small, speculative bullish position with a tight stop just below the support.

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