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

According to people with knowledge of the situation, Qualcomm Incorporated (QCOM) is to meet with Broadcom Ltd on February 14th to discuss Broadcoms $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