Patience with QUALCOMM

Published on Friday, 30 July 2010 05:48 Written by Danny Miller

New York, July 30th (TradersHuddle.com) - Shares of QUALCOMM Incorporated (NASDAQ:QCOM) closed the trading session at $38.78 near its 200 day moving average currently set at $40.53. QUALCOMM's price action is below this important level, which makes the stock difficult to buy, as there will certainly be 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 places calculated support at $31.63 and calculated resistance at $39.66. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in QUALCOMM shares.

Traders should evaluate their trade if they want to establish a position on QUALCOMM given the resistance expected as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.