Qualcomm: #PowerStocks Series Pick Of The Week (May 2024)

It's sizzling hot. No, I'm not referring to my Teppanyaki. If the weather gets any hotter, I think we will be able to fry more things apart from eggs. The weather isn't the only thing that's hot, though! After a 6% correction, the US stock market is back. Red hot. Before sharing about this week's stock pick, let's review last week's stock pick: Genuine Parts (GPC).

Review Of Last Week's Pick Of The Week

Do you remember that I was expecting the share price of Genuine Parts to continue falling? Its share price had indeed fallen to the price area I was hoping for, ~$157, before heading higher. Did you catch its shares for an explosive swing trade? Given that the overall US stock market is still quite volatile, please be more careful by placing your stop loss and take profit levels. With that, let's analyze this week's swing trading opportunity: Qualcomm.

Why Is Swing Trading Qualcomm (QCOM) Worth It?

Source: qualcomm.com

Qualcomm (QCOM) is this week's #PowerStocks pick. This technology company develops and commercializes foundational technologies and products used in mobile devices and other wireless products. With the rise of artificial intelligence (AI), Qualcomm's share price has benefited greatly, rising 29.5% year-to-date. Such a performance meant that it had been consistently outperforming the S&P 500. Besides, its share price movement is more controlled and has been proven to be explosive. A pullback could be near, presenting you with a fantastic swing trading opportunity. What's the price area I'm watching for an entry? Continue reading to get the details. P.S.: What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short period of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Qualcomm(QCOM)

There are 2 critical bits of information that you can get from the comparison chart above. Do you know what they are? They are trend and relative performance.

#1 Price Trend

Whether you're a trader or investor, you'll profit by following the price trend. Can you tell that Qualcomm's shares are in a strong uptrend at this juncture? Therefore, you'll want to be looking out for buying opportunities.

#2 Relative Performance

You'll want to buy a stock that's outperforming the S&P 500. Why? By doing so, you are reducing the risk of buying a laggard stock, which will probably bring you poor returns. Referring to the comparison chart, it's easy to see that Qualcomm's shares' performance is mightily outperforming the S&P 500, making it worthwhile for further analysis.

How Explosive Is Qualcomm (QCOM)?

As a swing trader, you'll want your stock to explode in price because of opportunity cost. Have the shares of Qualcomm risen rapidly repeatedly? Qualcomm's share price has been enjoying upmoves between 6.7% and 24.3% lately. For a $200b company, it's no easy feat! Hence, the magnitude of these upmoves is considered to be explosive. Ok, so the shares of Qualcomm is worth your time and money for a swing trade. Should you be buying them now?

Key Price Levels

Uncovering the key price levels of the shares of Qualcomm suggests that the time to buy its shares for an explosive swing trade isn't here yet. Yes, key price levels are akin to support and resistance zones where prices are inclined to turn. With a key price level identified at ~$175, you can expect that price area to be a support zone. What does this mean? There's a high chance of its shares falling to ~$175 in the next few days, and a great buying price would be at that price area after its share price has bounced. I'm eagerly waiting for this to happen for a chance of swing trading its shares. Did you also notice a resistance zone ~$188? Qualcomm's share price could face resistance at that price area, so that's where you can place your take profit level. Are you excited about the chance to swing trade this AI stock? Please note that this is for educational purposes. You're highly encouraged to perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!