I agree. The technical analysis of the article is good. However, what can change is a change in fundamentals, which is always in QCOM's management's court. Until such event, the technical analysis in the article remains intact.
Notwithstanding, the volume with which this stock plummeted illustrates how much "hot air" was in the stock when it lofted up to the uppermost 40s. This stock is, & has always been, a trader's dream, provided you know how to trade with discipline.
For the longer term investor, the stock is dead money. The opportunity for the investor is to increase one's position as the stock approaches next support levels.
Contrary to the author's view, what is driving QCOM to lower support levels of 34-35 is the current overall market direction, & not particular to the technicals of the stock. But for the recent turn in the general market, support for the stock is around current levels, but namely in the 37-38 range. In my view any drop into the 35-37 ranges should provide opportunity to increase one's position.
What technicals don't convey is the fact that companies in the mobile space will offer above-average growth as the world economy recovers, & QCOM is uniquely position to be one beneficiary. In short, once the clouds currently hovering over the company pricing, & the mobile wireless space clear, expect a return to heavy buying & upward momentum.
Technical resistance levels will dampen the upward move @ first. The key will be in the upward trend staying power, which, if anything can be learned from the article, will reveal itself in the charts. |
