What To Buy: QCOM (Qualcomm)
Qualcomm is a semiconductor company that designs, manufactures, and markets digital wireless telecommunications products and services. It produces chips and other technologies that Apple uses in its products. During the last quarter of 2018, its revenue decreased by 20% in comparison with the previous year. What is really important is that the company raised a forecast of its future earnings.
What can affect Qualcomm’s revenue increase?
-> New 5G smartphones will appear on the market. Most of them will have Qualcomm’s system-on-a-chip (SoC).
-> The company signed an interim patent agreement with Huawei which will be valid until the third quarter (Q3) of the current fiscal year.
QCOM was in a downtrend on the daily chart yesterday. Probably the news about lowering revenue made traders buy the stocks. We see the gap (area on the chart where the price of a stock moves sharply down, with little or no trading in between, a blue oval in the picture). Breaking $52 level can bring us to an uptrend. The goal now is $54. It is an important price which was the start point for a fall on yesterday’s daily chart.
You can buy Qualcomm’s stocks (QCOM) now.
Current price: 49,5$
Take profit when the price hits 54$
Growth perspective: until 54$
To make this deal safer, wait until the stocks reach $52 level and purchase.