The 200 Day Moving Average is Key for QUALCOMM

Published on Monday, 25 June 2012 09:12 Written by TradersHuddle Wire

New York, June 25th (TradersHuddle.com) - QUALCOMM Incorporated (NASDAQ:QCOM) closed the trading session at $55.64, near its 200 day moving average set at $58.12. QUALCOMM's stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $55.62 and resistance at $59.69. Traders should closely monitor these levels, as they provide great reference points for the latest price action in QUALCOMM.

If traders want to establish a position on QUALCOMM, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.