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Qualcomm (QCOM) Crossed Above the 20-Day Moving Average: What That Means for Investors

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Qualcomm (QCOM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, QCOM crossed above the 20-day moving average, suggesting a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Moving Average Chart for QCOM

QCOM could be on the verge of another rally after moving 10.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

Looking at QCOM's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 11 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on QCOM for more gains in the near future.


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