Will a New Deal Help Qualcomm Stock?
T = Trends for a Stock’s Movement
Qualcomm is engaged in the design and manufacture of digital communications products and services. The company operates in four segments: Qualcomm CDMA technologies, Qualcomm technology licensing, Qualcomm wireless and Internet, and Qualcomm strategic initiatives. It develops and supplies integrated circuits and system software based on CDMA, OFDMA, and other technologies for uses in voice and data communications, networking, application processing, multimedia, and global positioning system products. The mobile industry has been hot in recent years and looks to continue as countries worldwide keep developing and demanding these products. As an increasing number of consumers and companies engage at rising rates with their mobile devices, look for Qualcomm to be a leading provider of these essential products.
The world’s largest mobile phone carrier, China Mobile (NYSE:CHL), may be getting closer to landing a deal with Apple (NASDAQ:AAPL). Apple needs to make up for lost market share in China, but has been reluctant to redesign the iPhone to work on China Mobile’s 3G network. A new chip made by Qualcomm that allows the iPhone to work on both 3G and 4G networks along with the rumored iPhone 5C, created specifically for emerging markets, have led some to speculate that a deal with China Mobile could happen soon.
T = Technicals on the Stock Chart Are Strong
Qualcomm stock has been trending higher in the last few years. The stock is currently digesting gains from a recent bullish run. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Qualcomm is trading above its rising key averages, which signals neutral to bullish price action in the near term.