By: Scott Redler
The new go-to technology stocks (VMW, AAPL, SNDK) have been leading this market rally and are breaking to new highs, but Qualcomm (QCOM) has remained at the low end of the range. With the sector booming, many have been scratching their head about QCOM’s weakness.
We see an opportunity for a laggard play in QCOM. Technically, the chart looks set up for a bounce, with 34 as the big support area. If QCOM can trade thru 35.30-35.40 with volume, we can see an easy move first to the 36.50 area, and next to 38ish. Put your stop for the trade at 34.
A potential catalyst to watch for is if AAPL opens up and finally goes with Verizon as a carrier for the iPhone. If so, the Qualcomm Snap Dragon chip will be used, and finally people will be forced to take note of their cash and market share.
