Trading Idea: Is QUALCOMM Breaking Out?

Published on Wednesday, 08 August 2012 08:36 Written by TradersHuddle Wire

New York, August 8th (TradersHuddle.com) - Shares of QUALCOMM Incorporated (NASDAQ:QCOM) closed the session at $61.34 just above calculated resistance at $60.19. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $53.09 and resistance at $60.19. Given that this range was broken, traders will be closely monitoring QUALCOMM's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that QUALCOMM is still near the broken resistance level, traders will be focusing on the $60.19 level to see if the stock holds the breakout without rolling over.