Rare Technical Occurrence Highlights QCOM’s Strength

Qualcomm's second breakaway gap in a month demonstrates the power of its chart formation

   
Rare Technical Occurrence Highlights QCOM’s Strength

Qualcomm (NASDAQ:QCOM) — This company is a leader in developing products and services based on its advanced wireless broadband technology. It reported a huge fiscal Q4 gain and raised its guidance to $3.78 in fiscal year (FY) 2013 (ended in September) versus $3.07 in 2012. Expectations for FY 2014 earnings were recently revised upward to $4.30.

As a result of the earnings strength, many analysts have raised their price targets. S&P has hiked its target twice in the past 90 days, and it is now at $84.

Last week, the stock broke through the resistance line of a right triangle while gapping through its 20-day moving average (green line). This is the second breakaway gap in a month — a rare occurrence that demonstrates the power of this formation.

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.

02 04 13 qcom 300x206 Rare Technical Occurrence Highlights QCOMs Strength

chart key 300x84 Rare Technical Occurrence Highlights QCOMs Strength


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/trade-of-the-day-qualcomm-nasdaq-qcom-5/.

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