Qualcomm shares gain for a second straight session on Monday, company to meet with Broadcom on Wednesday

February 13, 2018 10:50 am

According to people with knowledge of the situation, Qualcomm Incorporated (QCOM) is to meet with Broadcom Ltd on February 14th to discuss Broadcom’s $121 billion acquisition proposal. It will be the first time, when the two entities will talk about a potential deal, Reuters reported.

The shares of Qualcomm Incorporated closed higher for a second consecutive trading session on Monday. It has also been the sharpest daily surge since February 6th. The stock went up 2.61%($1.67) to $65.66, after touching an intraday high at $65.68, or a price level not seen since February 7th ($66.12).

In the week ended on February 11th the shares of the digital communication technology company lost 3.15% of their market value compared to a week ago, which marked a second consecutive period of decrease.

Due to recent gains, the stock has pared its loss to 3.79% so far during the current month, following a 6.61% surge in January. The latter has been the second gain out of eight months.

For the entire past year, the shares of the NASDAQ-listed smart phone chip maker fell 1.81% following a 30.45% surge in 2016.

Last week Broadcom sweetened its cash-and-stock offer to $82 per share from $70 per share previously. The company also offered to pay Qualcomm Inc a breakup fee of $8 billion, in case the deal ends up blocked by antitrust regulators.

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Qualcomm Incorporated’s stock price, have a median target of $75.00, with a high estimate of $86.00 and a low estimate of $56.00. The median estimate is a 14.22% surge compared to the closing price of $65.66 on February 12th.

The same media also reported that 11 out of 21 surveyed investment analysts had rated Qualcomm Incorporated’s stock as “Hold”, while 8 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Qualcomm stock are presented as follows:

R1 – $65.77
R2 – $65.87
R3 (Range Resistance – Sell) – $65.98
R4 (Long Breakout) – $66.30
R5 (Breakout Target 1) – $66.67
R6 (Breakout Target 2) – $66.84

S1 – $65.55
S2 – $65.45
S3 (Range Support – Buy) – $65.34
S4 (Short Breakout) – $65.02
S5 (Breakout Target 1) – $64.65
S6 (Breakout Target 2) – $64.48

By using the traditional method of calculation, the weekly levels of importance for Qualcomm Incorporated (QCOM) are presented as follows:

Central Pivot Point – $63.68
R1 – $66.86
R2 – $69.73
R3 – $72.91
R4 – $76.09

S1 – $60.81
S2 – $57.63
S3 – $54.76
S4 – $51.89

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