Chart of the Day: Our Semiconductor Name Retains Strong Setup After Hit
After a big hit this week, the stage is set for this big-chip company to make some headway.
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Qualcomm QCOM took a big hit this week along with its brethren. The Semiconductor HOLDRS SMH got belted hard. We discussed it in last week's roundup as we believed a lower level would likely be coming. That happened basically in one day (markets move fast, don't they?). In any case, Qualcomm looks to have provided another excellent entry point, in fact we bought some more of it today.
Is there more downside, though? It's quite possible and perhaps an even better buying opportunity to get long.
The chart is mildly bearish here, with a rollover in the MACD and candles now purple (bearish) on the GoNoGo composite of indicators. Stochastics (momentum) is bearish too, so the signs are stacking up. However, the indicators are in alignment with the price action, so QCOM is under some distribution (big institutional selling).
What to do? We continue to like Qualcomm long term. We rate it a two in TheStreet Pro portfolio, stockpile on pullbacks.
More Pro Portfolio:
- Locking in Big Gains on This High-Flying Stock
- Weekly Roundup: Rotating Back to the Start
- Reading the 'News Signals' From Our Investing Notebook
At the time of publication, TheStreet Pro Portfolio was long QCOM.
