Qualcomm (NASDAQ:QCOM) — This company is a leader in developing products and services based on its advanced wireless broadband technology. Its stock performance had been outstanding until it was hit with a shortage of chips from Japan.
That and profit-taking drove the stock down from its March high over $68 to under its 200-day moving average. It appears to have found support at a quadruple-bottom just under $54, where five sessions ago, it reversed with a breakaway gap. On Monday, the gap was covered and the stock closed above its 50-day moving average (blue line). Its MACD indicator is on a strong buy signal.
QCOM earnings are expected to increase from $3.20 in FY 2011 to $3.65 in FY 2012 and $4.11 in FY 2013. Analysts have a target of between $70 and $81 within 12 months. Long-term buyers should add this premier tech stock to their portfolio now, and traders should expect a rebound to $63 to $65.