QUALCOMM Incorporated (NASDAQ: QCOM) shares rose on Wednesday January 25 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Morgan Stanley analysts reiterated its Equal Weight rating on QUALCOMM Incorporated (NASDAQ: QCOM) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Equal Weight on the stock, the company has a 52-week high of $71.62. The one-year price target of $69.46 is above the opening price of $56.10, causing a number of other analysts to comment on the company in recent days. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday QUALCOMM Incorporated (NASDAQ: QCOM) shares last traded at $55.81, which is a jump of $0.81 compared to the previous closing price. Opening at $56.10, they ranged from $55.50 and $56.20 throughout the day.
QUALCOMM Incorporated (NASDAQ: QCOM) currently has a market cap of 82.43B.
QUALCOMM Incorporated (NASDAQ: QCOM) Average Daily Trading Volume
3,832,724 shares crossed the trading desk yesterday, 44 percent below normal, out of a total float 1,474,951,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
QUALCOMM Incorporated (NASDAQ: QCOM) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
Trades for QUALCOMM Incorporated (NASDAQ: QCOM) have ranged from $42.24 – 71.62, and the stock now has a 50-day MA of $65.77 and 200-day MA of $64.37. Today’s last price is 22.07%% under the 52 week high of $71.62.
Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over the past 3 years.
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