Qualcomm Inc (NASDAQ:QCOM) is a leader in the design and development of digital communication technology called code division multiple access (CDMA) and orthogonal frequency division multiple access (OFDMA) family of technologies including long-term evolution (LTE). The stock has been in the news for the past several months negotiating a potential takeover bid by Broadcom Ltd (NASDAQ:AVGO). This deal was shot down by the Trump administration citing national security.
Traders should now notice that QCOM is trading below its wide range sell-off bar from February 5, 2018. This chart formation puts the stock is now in a very negative technical position. The next major support level for QCOM stock will be around the $55.00 area. This is a level where the stock broke out in October 2017. Often, prior breakout levels will serve as major support when initially retested.