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.

Trade of the Day -- Qualcomm (NASDSQ:QCOM)
Click to Enlarge

Trade of the Day Chart Key

  1. QCOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=QCOM
  2. Trade of the Day: https://www.investorplace.com/2012/07/trade-of-the-day-qualcomm-nasdaq-qcom-2/

Source URL: https://investorplace.com/2012/12/trade-of-the-day-qualcomm-nasdsq-qcom/
Short URL: http://invstplc.com/1nu0uu3