If QUALCOMM Breaks This Chart Trend Line, Buy Puts Immediately

QUALCOMM, Inc. (NASDAQ:QCOM) is a stock that has been a momentum play for months. However, after close examination of the stock chart recently, investors can clearly see the momentum stalling. Note in recent weeks how the stock has had trouble making higher highs. The incline has stalled to almost a flat-line. This tells smart investors that it could be ready to turn lower. The trigger for buying put options on Qualcomm will be when it breaks the trend line connecting the lows since July 21st, 2016. Once this trend line breaks, Qualcomm will likely collapse quickly to a price taget of $55.75. This level is a technical support point known as gap fill. Once it breaks the trend line at approximately $62.50, I am loading January 2017 puts. Strike will be $60.00. Enjoy the ride.

By Swing Trader