Qualcomm About to Break Through Major Resistance

by Sam Collins | December 19, 2012 1:00 am

Qualcomm (NASDSQ:QCOM[1]) — This company is a leader in developing products and services based on its advanced wireless broadband technology.

On July 24, the Trade of the Day[2] said, “[The stock] appears to have found support at a quadruple-bottom just under $54, where five sessions ago, it reversed with a breakaway gap… Long-term buyers should add this premier tech stock to their portfolio now, and traders should expect a rebound to $63 to $65.”

That rebound occurred and drove the stock to $65.45 on Sept. 19. Profit-taking took QCOM back under $58 in mid-October, but it rebounded nicely, and in each of the past four trading days, closed above its 50-day and 200-day moving averages.

The company reported a huge Q4 gain and raised its guidance to $3.78 for fiscal year (FY) 2013 versus $3.07 in FY 2012 (ended in September). Expectations are for earnings of $4.30 in FY 2014 (recent upward revision). As a result, many analysts raised their price targets. Nomura Group hiked its target to $70-$75 and S&P’s new target is $82.

On Tuesday, the stock closed a small gap and threatens to break through the major resistance line at $64. The trading target for QCOM is $74, but longer term, look for much higher prices since this company is on an earnings tear that could exceed analysts’ estimates in every quarter in FY 2013.

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Source URL: https://investorplace.com/2012/12/trade-of-the-day-qualcomm-nasdsq-qcom/

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