Qualcomm $QCOM surged today after a settlement with Apple $APPL. I think the main point was that Apple will resume buying Qualcomm chips, which makes QCOM attractive at the $57-$58 price point to start this week. However, after a surge to above $70, I think the downside risk will be heavier or at least equal to the chance of further upside. QCOM Daily Chart(click to enlarge)Don't Chase:- If you did not invest in QCOM when price was down around $50, or stalled around 56-$58, today's (4/16) pop might make you want to jump in now above $70. - However I think there is an equal chance price will dip to $60 as it would continue towards the 2014 and all-time-high around $81.90.- I don't think price will fall below $55. If it does then, the market is bearish on QCOM. We can put a stop below $55. - I think QCOM is still in consolidation mode, with a slight bullish bias. - With this consideration, I would rather wait for a pullback to $60 before considering a buy. Here is a summary of today's news on Qualcomm:Key Points:Apple and Qualcomm have settled a royalty and patent dispute that went to trial this week in San Diego, California.As part of the settlement, all legal action worldwide between the two companies will be dropped, and Apple will buy Qualcomm chips again.Qualcomm said it expected a $2 increase in earnings per share and its stock rose over 20%.Apple and Qualcomm have settled their royalty dispute, the companies announced in a press release. The settlement includes a payment from Apple to Qualcomm as well as a chipset supply agreement, suggesting that Apple will buy Qualcomm chips for future iPhones. The companies did not say how much the payment will be. Qualcomm stock rose more than 20% after the news broke, boosting its market cap by about $14.5 billion to to more than $84 billion. It’s Qualcomm’s best day since 1999...From: CNBC