How to Scale Mount Qualcomm
Qualcomm (QCOM) is beginning to look a bit similar to Intel (INTC). If it trades below $54, it looks like death – just like INTC looked when it was trading below $24.75. QCOM has come way off its highs. In fact, when I look the chart, I see nothing but Mount Qualcomm, which may do its best to look like Pompeii –- again, if the stock falls below $54. I don't see it happening. The bad news looks baked in and the stock seems to be shaking off resistance this morning to head higher.
QCOM is finding the breakout of resistance supported by the relative strength index pushing over the midline as well as the stochastics. It is earnings season, so obviously there is a risk. But from the fundamental side of the fence, QCOM isn't expensive and it sits with dependable cash flow. There will be a few lottery players looking at the July $57.50 or $60 calls, but I don't think QCOM can get through that $58-$59 level without some work....180 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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