QCOM caught my eye after Friday’s trading session and looks to be presenting a pretty good opportunity for a low risk trade to the long side. Noting this as purely a technical setup as earnings are out of the way until 4/19/17. The stock looks to be forming a base with today being the first close above the 8EMA since the recent sell off. QCOM closed on Friday at 54.00 and had an intraday high of 54.28. The stock has plummeted so far in 2017 from the mid 60’s to its current level at 54. January 23 specifically I look at as the day of panic selling or capitulation due the major gap down from the 60’s into the 50’s. QCOM traded over 94 million shares that day, a volume of which the stock has not seen since April or 2010. That’s a serious amount of shares changing hands.
Along with the bullish candlestick demonstrated from Friday’s price action, QCOM is just beginning to come out of oversold stochastic territory with ascending volume. If it can cleanly break through Friday’s high of 54.28, I’d be interested in opening a long position in the range of 54.35-54.40 with a target of 58.67 (which is the high from the January 23 gap down day) and a stop beneath 52.37 (February 2017 low from 2/2/17).
Also worth noting, QCOM goes Ex-div ($0.53) on Monday, 2/27/17. May be willing to risk/position size slightly larger knowing there is a chance to catch the dividend. Let’s see how the stock goes on Monday.