Top Stocks to Buy – BHI, BMY, D, HMY, QCOM, SPG

This month's picks based on proven performance, above-average dividend yields

Jul 30, 2012, 11:27 pm EDT | By Sam Collins, InvestorPlace Chief Technical Analyst

Top Stock to Buy #5 – Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) is a leader in developing products and services based on its advanced wireless broadband technology. And the stock’s performance had been outstanding until it was hit with a shortage of chips from Japan. That and profit-taking drove it from its March high of over $68 to under its 200-day moving average.

QCOM appears to have found support at a quadruple-bottom just under $54, where eight sessions ago, it reversed with a breakaway gap. The gap was covered, and the stock quickly reversed up and closed above its 50-day moving average (blue line) and then its 200-day moving average (red line). Its MACD indicator is on a strong buy signal.

Analysts have a target of between $70 and $81 within 12 months. Long-term buyers should add this premier tech stock to their portfolios now, and traders should expect a rebound to $63 to $65.

QCOM Chart