Don’t you hate when you don’t take your own advice. As I have been prepairing to write this article, The Qualcomm Bounce has raised its head to me once again. The great thing about anything that bounces is that it’s going to do it again and again. So even though I’m kicking myself, it won’t be long before I can regain my composure.
Qualcomm is one of those stocks that is ready to break out of its trading range — you can see and smell it. Though the markets haven’t quite caught on to the upside potential, there are several ways to play Qualcomm’s continued bounce: short, long, or trade often (buy when it’s low, sell when it’s high).
When should you invest in Qualcomm? For those who want to play Qualcomm long or ‘trade often,’ I suggest buying anytime the price hits $37 and under. If you want to short, first I suggest that you do your research into this art. Remember this, all things that go up eventually go down. So there is money to be made, but shorting isn’t for everyone.
When will Qualcomm break out of its trading range? As legal issues hold Qualcomm’s stock in this perpetual trading range, it will continue to be at play. But as world demand begins to realize the potential, possiblities, and functionality of smaller devices, there will be a need for higher bandwidth to play games, watch and download video. And Qualcomm’s patented 3G technologies will enable many of these devices. As this demand increases world wide, so should demand for Qualcomm stock. Happy Bouncing!
QCOM