Be Quick to Buy Qualcomm on a Pullback

QCOM broke through the resistance line of a right triangle

   

Qualcomm (NASDAQ:QCOM) — This company is a leader in developing products and services based on its advanced wireless broadband technology. Qualcomm reported a Q4 earnings gain and raised its guidance to $3.78 in fiscal year (FY) 2013 versus $3.07 in FY 2012, ended in September. Expectations are for earnings of $4.30 in FY 2014, a recent upward revision. As a result, many analysts have raised their price targets. Nomura hiked its target to $70-$75 and S&P’s is $82.

On Wednesday, the stock broke through the resistance line of a right triangle while gapping through its 20-day moving average (green line). Gaps are often partially closed, so try to buy QCOM at $62.75 with a trading target of $74. Longer-term investors could expect much higher prices since this company is on an earnings tear that could exceed analysts’ estimates in every quarter in FY 2013.

Trade of the Day -- Qualcomm (NASDAQ:QCOM)
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Trade of the Day Chart Key


Article printed from InvestorPlace Media, http://investorplace.com/2013/01/trade-of-the-day-qualcomm-nasdaq-qcom-4/.

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