Trading Idea - Is QUALCOMM close to Resistance?

Published on Monday, 23 January 2012 09:08 Written by Christopher Lynn

New York, January 23rd (TradersHuddle.com) - Shares of QUALCOMM Incorporated (NASDAQ:QCOM) are trading very close to calculated resistance at $58.24 with the current price action closing at just $57.73 placing the stock near levels that make it difficult to buy.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and delivers digital wireless communications products and services based on ots CDMA digital technology. It provides integrated CDMA chipsets and systems software, technology licensing, Eudora email software, and satellite based systems.

QUALCOMM's current stock range is defined by current calculated support defined at $51.76 and by the resistance level at $58.24, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for QUALCOMM, as the stock is well above support, however, as the stock pulls back towards $51.76 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $58.24 then traders will get an opportunity to enter QUALCOMM stock by establishing a position as the stock moves to a higher range.