Qualcomm (QCOM)

Qualcomm (QCOM) has been a great example at how some stocks are best when your buying them near support instead of after the break of a trend line or resistance.  Waiting for a break often left you down on the position in the coming days.  QCOM tested the longer term uptrend line on the first few pull backs but has not been there for a while and recent dips held the 50 day SMA.

QCOM received a recent downgrade of sorts by Goldman Sachs from Conviction Buy to Buy but they left the $80 price target.  That price target would leave over 20% upside in the name.  If I were looking to get into the name in the short term then I would be expecting the 20 and 50 day SMA’s to hold as support, below and I would think QCOM might target the long term trend line or 200 day SMA which would be the next potential long region (although we will have then broken the pattern of higher highs and higher lows).  QCOM’s MACD looks like it could be in a long recycling pattern which if it holds above zero should remain constructively biased.

I also happen to be writing this on the eve of the Samsung S4 launch which is deemed a positive for QCOM and even just today William Blair reiterated their Outperform rating on the stock noting the S4 launch as a positive.

Even with the downgrade, QCOM is one I would have on the Watch List with some price alerts (alarms) set so I know when its moving.