Wall Street is never at a loss for saying what matters on any given day. But when it comes to Qualcomm (NASDAQ:QCOM), forget the daily noise. All that really matters is what’s going on off and on the price chart. And for QCOM stock, that’s an environment ripe for buying growth at a discount. Let me explain.
In the past week, we’ve heard how a sales warning out of tech behemoth Apple (NASDAQ:AAPL) was an obvious bad omen for the market and tech stocks in particular. And the news did rattle the major indices for all of one day, with markets across the board down 3% or more.
Stronger jobs growth, the possibility of an easing trade war and some soothingly dovish rate talk turned Thursday’s plunge into a buy-the-dip bonanza with market indices handily above the pre-Apple panic and hitting levels last seen back in mid-December.
But not shares of Qualcomm.
Since last Thursday, QCOM stock has been a bit of a wet blanket for bulls.
Despite gains of more than 7% in the Nasdaq and even Apple stock reclaiming more than two-thirds of its loss, shares of Qualcomm are right around even for the period.
So, what gives? Why has it been such a stick in the mud? Despite recent legal wins, a much ballyhooed legal fight with Apple is still likely acting as a drag on shares. But I don’t mind for a second seeing the positive in today’s negativity, as it offers the strong promise of buying growth at a discount.
Bottom line, with a bright future outside of Apple (spearheaded by Qualcomm’s first-mover advantage in the 5G networking space) and shares offering bulls a similar position of sorts on the price chart, it’s time to get ready to buy QCOM stock!
QCOM Stock Weekly Chart
Since establishing a grueling 20-month-long corrective low three years ago, it’s easy to see that Qualcomm’s volatile price swings have been good to both bears and bulls. Now and if history serves as any sort of indicator, a first-mover advantage has moved back onto the bulls’ playing field.
Beginning with a bullish higher low formed back in November, shares of Qualcomm have established a two-month-long double-bottom pattern just above up-channel support. In conjunction with a favorable stochastics set-up, this looks very bullish. And with QCOM’s pattern bottom receiving bullish confirmation last week, it’s time to put shares on the radar for purchase.
Trading QCOM Stock
My suggestion for like-minded investors wishing to go long QCOM would be to wait for shares to re-cross last week’s buy signal of $57.53. That’s about 2.3% above Qualcomm’s current market price. Given the market’s temperamental behavior of late, the extra bit of price confirmation, along with using a pattern stop-loss, looks every bit worth paying for a more promising and very profitable outcome.
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Louis Navellier has a track record that’s the envy of Wall Street. For over 20 years he's outperformed the market and discovered Apple at $4... Oracle at $6... and Amazon at $40 along the way. Here's what he's saying to buy now.
Source: Investor Place