Signs Of Life In Qualcomm
San Diego, Calif.-based Qualcomm
(
QCOM |
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Chart |
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PowerRating), the stock that was 1999’s tech
darling, avoided the market downdraft Monday after receiving an upgrade from a
First Union Securities analyst who put a $90 price target on the stock. QCOM
finished the day up 3 9/16 at 69 13/16. This news-triggered rise follows through
on favorable comments made in last week’s Business Week magazine in which a
money manager was quoted as saying that the wireless telephone company should
hit $150 in three years.
The technical picture seems to corroborate some of this institutional buzz.
The stock has been trading quietly in a base for the past three months.
Institutions in bargain hunting mode have been leaving tracks behind in the form
of accumulation days. The most recent flurry of buying has resulted in a rise from
the bottom of the base accompanied by a surge QCOM’s average daily volume.
Monday’s action takes the stock to the very top of the base and sets the
stage for some probing action or perhaps a handle that would foreshadow a
breakout attempt. QCOM is one that many traders will be adding to their
watchlists.
Profitable trading,
Eddie Kwong
Loren Fleckenstein is on vacation and will return on Wednesday the 20th.