QUALCOMM Incorporated [NASDAQ: QCOM]: It was an interesting weekend, one that saw big developments both in global trade, and geopolitics. Over the weekend, President Trump and his Chinese counterpart agreed to revamp the trade talks. He also met with N.Korea’s leader, and became the first U.S president to set foot on North Korean soil. This news has created an air of optimism in the global economy. U.S markets are showing positive signals with the NASDAQ and the Dow leading the way. This means U.S stocks, especially those directly caught up in the U.S-China trade war could see a bump in price this week. One stock that might attract investors attention is QCOM.
That’s because President Trump, as part revamping trade talks on China, eased up on some of the restrictions that had been placed on Huawei. This could mean that Companies like QCOM could be able to sell chips to Huawei again. This is positive news considering that Huawei is one of their biggest customers. This could add to their sales, and the excitement it could create in the market could see it trade in the green this week.
QCOM closed last week in the green, with a bullish breakout that saw it close at $76.07. Friday’s price action saw it break intra-day resistance at $75.94. If in the course of the day, QCOM pushes above Friday’s high of $76.44, it could be an indicator of strong bullish momentum, and could see it make gains in the day. The positive mood in the market not just because of Huawei but also the fact that it could reopen trade with other Chinese’s tech companies.
In regards to QCOM and the chart below, I’d like to see it close above $76.07 and hold this range in order to build a new support level from here.
Other stocks to watch this week include Intel and Micron, since they are also big suppliers to major Chinese companies. Chinese companies such as Alibaba could see some action now that there is hope for a solution to the trade war.