Qualcomm's most recent trend suggests a bearish bias. One trading opportunity on Qualcomm is a Bear Call Spread using a strike $70.00 short call and a strike $75.00 long call offers a potential 16.82% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $70.00 by expiration. The full premium credit of $0.72 would be kept by the premium seller. The risk of $4.28 would be incurred if the stock rose above the $75.00 long call strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Qualcomm is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Qualcomm is bearish.
The RSI indicator is below 20 which suggests that the stock is in oversold territory.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Qualcomm
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Tue, 04 Jun 2019 08:06:13 +0000
As the U.S. trade war expands, four sectors with high foreign revenue exposures could face weakening demand.
Even After All the Courtroom Drama, Qualcomm Stock Is a Buy!
Mon, 03 Jun 2019 17:08:56 +0000
Once more, Qualcomm (NASDAQ:QCOM) is the "same as it ever was" off and on the price chart. And for QCOM stock bulls, that spells opportunity. Let me explain.Source: Shutterstock Just when investors thought all of QCOM stock's legal headaches were done, along comes the Justice Department. I'm referring to Qualcomm's favorable settlement in late April against Apple (NASDAQ:AAPL) followed a month later by an unceremonious opposing verdict citing Qualcomm's chip licensing patents business violates Fair, Reasonable and Non-Discriminatory (FRAND) standards.InvestorPlace's Dana Blankenhorn does a nice job of describing the nuts and bolts surrounding this most recent development in Qualcomm. It's worth the read, in my view.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOn the price chart, the two announcements were disruptive to QCOM stock, to say the least. Shares of Qualcomm exploded higher by 23% in the immediate aftermath of the AAPL stock news and roughly doubled those gains over the next five trading sessions for a net rally of about 46%. Conversely, on May 22, on the heels of the Federal Trade Commission Act ruling, QCOM plunged by nearly 11% on top of May's existing broader market, trade-war-driven losses of about 14%. * 7 Bank Stocks to Leave in the Vault In summary, the net legal wrangling looks like a victory lap for Qualcomm lawyers on the clock and appealing the decision. And similar to the drawn-out Apple litigation, a decision could take years. But if you look past the courtroom drama and onto the weekly QCOM stock price chart, the technical ruling says bullish investors could be in a winning position if history serves as any sort of precedent. QCOM Stock Weekly ChartIn truth, the price action of the past month isn't entirely the same as it ever was. The rally following the Apple news which drove QCOM stock well above longstanding channel resistance quashes that argument. Of course, that price action was good while it lasted. But its failure isn't the end all, say all either.Despite shares of Qualcomm failing to hold a couple key Fibonacci levels, prior highs and former resistance channel line during May's corrective counterattack, the opportunity for contrarian-minded bullish investors is building right here, right now. As the weekly chart illustrates, higher highs and lows are still very much a part of the Qualcomm price chart. That's bullish as far as QCOM's uptrend dating back to 2016 is concerned.But there's more too.Entering this trading week, a candlestick doji or hammer-like pattern low has been confirmed deep in value territory at the 62% Fibonacci retracement level. This further builds the case for Qualcomm bulls. However, I wouldn't buy shares just yet as the weekly stochastics isn't supporting a technical low at this juncture. QCOM Stock TradeMy recommendation is to buy QCOM stock above $70.24 as long as the weekly doji low remains intact. The improvised signal is roughly $3, or about 4.5% above Monday's intraday trading. This entry forfeits some upside in favor of waiting for momentum to build if Qualcomm shares can reclaim their 2014 high and the failed 50% retracement level.For money management, a stop below $64.24 allows for modest wiggle room beneath the candlestick pattern. This also keeps risk contained to just over 9%. In conjunction with upside potential where filling the gap near $77.50 looks realistic (and even Qualcomm's recent May high of $90.34 isn't entirely out of the question), bulls have a winning strategy in the trade war against bears.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Heavily Shorted Stocks to Sell — Because the Bears Are Right * 7 Bank Stocks to Leave in the Vault * 7 Stocks for You to Profit From (Legal) Insider Trading Compare Brokers The post Even After All the Courtroom Drama, Qualcomm Stock Is a Buy! appeared first on InvestorPlace.
Hottest Wall Street Stories: What's Up, What's Down
Mon, 03 Jun 2019 12:57:12 +0000
Tariff tantrums hit the broader stock markets last month, leading to the worst May after 2010. Below we discuss these in detail and the impact on the stock world from these events.
Does Nvidia Stock’s 23% May Tumble Make Shares A June Buy?
Mon, 03 Jun 2019 10:50:59 +0000
Nvidia (NASDAQ:NVDA) investors thought the roller coaster ride might be over, but that's far from the case. Shares were on fire in 2018, surging higher and riding hundreds of percent in return over the last few years. However, NVDA took a dark turn in Q4, falling more than 50% from peak to trough.Source: via NvidiaShares hit a low near $124 in late December after peaking near $292 in early October. Despite poor guidance in January, Nvidia stock price quickly digested the news and moved higher. After recently holding steady near $190, we've seen another quick landslide in NVDA stock. Shares lost 22.9% for the month of May as the Nasdaq Composite index lost 7.4%.It's brutal, but is it an opportunity to get long?InvestorPlace – Stock Market News, Stock Advice & Trading Tips Breaking Down NVDA StockNvidia buried any short-term optimism that I had in the stock last quarter when management didn't provide a full-year outlook. It suggests to me that, at the very least, the climate can stay turbulent. That really turned me off on NVDA stock, even though it was holding up after earnings on May 16. While Nvidia beat on earnings and revenue, the stock shed almost $20 since then.Of course, it doesn't help that this industry is in the crosshairs of the trade war. Nvidia generates a lot of revenue in China, as does Advanced Micro Devices (NASDAQ:AMD). But be it Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM) for their company-specific events, or Broadcom (NASDAQ:AVGO) which has come down with the group, the selling pressure has been intense across the board.So what do we make of it all?Plenty of investors love to point out NVDA stock's price-to-sales ratio. While it was a lot higher nine months ago, it's not low now at 7.7 times this year's revenue estimates. However, 26 times earnings isn't that obnoxious, although investors could make a case that it's still too rich given that forecasts call for a 20% earnings decline this year. That may prove conservative if the environment remains rocky, as management opts for quarter-at-a-time outlooks given the current climate. Unfortunately, that's understandable, but it's hard for an investor. * 7 Stocks to Buy for June All that said, expectations call for a notable snap-back next year, with estimates calling for earnings and revenue growth of ~35% and ~20%, respectively. That may not hold up, but I am looking at Nvidia as a pivotal piece to the technological future. Be it in gaming, AI, autonomous driving, data center and more. It's simply too good to toss out over short-term worries. Trading Nvidia Stock Price Click to EnlargeWe looked at NVDA stock earlier this month, noting that it's in the midst of a falling wedge pattern. Typically, this setup is bullish, but a break below support was the worry. With shares trading near $144, Nvidia stock price was near support from February and March.Absent the industry-wide selling pressure, this would typically set up NVDA stock price for a low-risk bounce play. The trade was "low risk" because we had a clear line of support. A close below would negate the trade and limit losses. However, given the industry pressure, more conservative traders in this case would rather wait to see if the stock could clear resistance, rather than bet on NVDA doing so beforehand.Okay, so that setup is in the trash. Now what? * 7 Stocks to Sell Amid an Escalating Trade War If management is right, the worst is seemingly behind Nvidia stock at this point. So ~$15 a share off its lows and $10 above where investors stepped in as big-time buyers near $130 throughout Q4 and Q1, and it's worth giving NVDA stock some attention.To be honest, it doesn't feel like the selling is over due to the escalating trade war. But I'm nibbling down here. We're 52% off the highs and down 20%+ over the past few weeks. This is in an incredibly high-quality company going through a tough stretch right now. $124 to $130 is the downside target and with all of its moving averages trending lower, NVDA stock has its work cut out for it.I'm not backing up the truck here, but I'm accumulating some equity for the long haul.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA and AVGO. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post Does Nvidia Stock's 23% May Tumble Make Shares A June Buy? appeared first on InvestorPlace.
Here is the 23rd Most Popular Stock Among Hedge Funds
Sat, 01 Jun 2019 21:50:36 +0000
After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of March 31. The results of that effort will be put on display in this article, as […]
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