QUALCOMM Is Close to Resistance

Published on Tuesday, 17 July 2012 08:20 Written by TradersHuddle Wire

New York, July 17th (TradersHuddle.com) - Shares of QUALCOMM Incorporated (NASDAQ:QCOM) are trading very close to calculated resistance at $56.68. The stock ended the trading session at just $54.36, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $53.11 and by the resistance level at $56.68; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for QUALCOMM. However, as the stock pulls back towards $53.11 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $56.68 then traders will get an opportunity to enter the stock as it moves to a higher range.