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Qualcomm (QCOM) Recently Broke Out Above the 20-Day Moving Average

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Qualcomm (QCOM - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, QCOM broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for QCOM

QCOM has rallied 9.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests QCOM could be on the verge of another move higher.

Looking at QCOM's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 9 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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