Qualcomm (QCOM) - Get Report has been tracing out an orderly pullback since late May. The stock's steady fade on light volume has retraced roughly half of its post-earnings rally. This week, QCOM reached a very solid support area and is beginning to show signs of a bottom. For patient investors, a very low-risk entry opportunity has now developed.

Back in April, QCOM dipped into new 2017 low territory immediately following its April 19 earnings report. Despite the damage during that session, and further damage one week later, the stock held up very well. By the start of May, the stock was back in rally mode and had left behind a powerful upside reversal near last summer's low. On May 19, the stock received a huge jolt sparking the second leg of the post-earnings rebound. QCOM left behind a solid support zone that day.

This week, after dropping over 6% from the May peak, QCOM is testing the May 19 breakout point. Also in this key support area is the March low, as well as the 50-day moving average. As shares regain their footing here, a low-risk entry opportunity has developed. QCOM bulls should view the stock a buy near current levels. A key overhead hurdle will be last week's high of $58.10. Once past this area, the stock will have some room to run. On the downside, a close back below $55.00 would signal a deep pullback is ahead.

Qualcomm's shares rose 1.2% to $57.17 early Friday afternoon.

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Long QCOM