Be Quick to Buy Qualcomm on a Pullback

QCOM broke through the resistance line of a right triangle

   
Be Quick to Buy Qualcomm on a Pullback

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.

01 03 13 qcom 300x213 Be Quick to Buy Qualcomm on a Pullback
Click to Enlarge

chart key 300x84 Be Quick to Buy Qualcomm on a Pullback


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

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.