Rare Technical Occurrence Highlights QCOM’s Strength

by Sam Collins | February 4, 2013 7:06 am

Qualcomm (NASDAQ:QCOM[1]) — 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.

QCOM Chart[2]

Trade of the Day Chart Key

Endnotes:
  1. QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/02/02-04-13-qcom.gif

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