Finding Support: QUALCOMM (NASDAQ:QCOM)

By InTheMoneyStocks.com

QUALCOMM (NASDAQ:QCOM) has been hammered after reporting quarterly results on January 27th, 2010. The stock dropped immediately by about 10% and has continued to move lower.  Not only did revenue and profit numbers miss Wall Streets expectations, but they also lowered their future guidance.  Since they reported earnings, combined with a downward move in the stock market, Qualcomm has been hammered.  The day of earnings, just before they released, the stock traded as high as $47.31.  Today, a low was made at $37.00.

So when is Qualcomm, Inc. a buy?  That answer is now!  Qualcomm just hit a low of $37.00 which has triggered a bullish long signal on the charts.  After earnings came out I was asked by my members where a great long opportunity would be.  They all wondered if it was at current levels (the day after earnings) when the stock was trading just above $40.00.  I replied that the entry would not be until Qualcomm hit $37.00. Today that happened.  The alert went out and the stock has started to climb off those levels.  The chart below shows exactly why, on a technical basis, Qualcomm is a long.

As a technical swing trader and day trader, one must always look at charts on all time frames and do analysis.  It is amazing what one can fine.  Enjoy, Live, Learn and Profit!

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com