Can Anything Stop Broadcom?Broadcom has been one of the top-performing large cap stocks this year. Now, after a period of consolidation, some traders may see potential for further upside.
The first pattern on today’s chart is the August 19 close of $167.71. AVGO initially stalled at this level and struggled to cross it in the first half of September. But it broke out later in September, and this month is trying to hold it. That may suggest that old resistance has become new support.
Second, the recent low was near the rising 21-day exponential moving average (EMA). The 8-day EMA is also above the 21-day EMA. Is a new uptrend developing in the chip stock?
Third, MACD is rising.
Finally, you have the June low of $130.25. Prices couldn’t stay below it when the broader market crashed on August 5. AVGO then proceeded to make a higher low the following month. Those signals may confirm a longer-term uptrend.
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