After reporting earnings a few weeks ago, QUALCOMM Incorporated (NASDAQ:QCOM)), a leader in the technology sector dropped from a high of $81.97 to a low of $76.66. The stock briefly paused, as it found some support around the 200 day moving average. However, this pause did not last long and the equity continued to fall, recently making a low of $71.82.
Over the last couple of days QUALCOMM has been moving higher from an oversold condition. This move up is no more than a technical bounce, and could be short lived.
The Trade:
Should QCOM come into the $76.25 area this week, traders as well as investors could use this area of resistance to sell the stock short and profit as it pulls back. Watch this level closely.
