Nearest Resistance: $84
Nearest Support: $77
Catalyst: Q2 Earnings
Bad guidance is to blame for Qualcomm's (QCOM - Get Report) 3.4% stumble on big volume this afternoon. The mobile chipmaker reported profits of $1.31 per share, beating Wall Street's $1.22 best guess. But QCOM's guidance came in on the low side of analysts' estimates, and that's a big part of today's downside move.
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Qualcomm has been a "buy the dips" name since last fall, when it started bouncing higher in an uptrending channel. So while today's stumble looks negative at first glance, it's giving QCOM buyers yet another dip to buy -- the last seven have been optimal buying opportunities. If you decide to go long here, I'd recommend putting a protective stop just below the 50-day moving average.
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-- Written by Jonas Elmerraji in Baltimore.