Two Way Setup (BUY / SELL ) - AVGO - Watchlist1. Look at during the Market open on Monday (Sep 30)
2. Buy / Sell depending on the momentum.
3. Target defined in the chart.
AVGO trade ideas
AVGO potential Buy setupReasons for bullish bias:
- Price is at trendline plus horizontal support
- Harmonic XABCD pattern formed
- No divergence
- Overall a bullish trend
Here are the recommended trading levels:
Entry Level(CMP): 147.85
Stop Loss Level: 127.19
Take Profit Level 1: 168.51
Take Profit Level 2: 182.84
Take Profit Level 3: Open
AVGO LONGAVGO stock has recently broken out of its accumulation range, signaling a strong bullish shift. After several weeks of sideways movement, the breakout suggests that institutional investors have accumulated shares, indicating confidence in the company's fundamentals.
This clear spring into Phase E of the Wyckoff accumulation pattern highlights the stock's potential for a significant upward move. The increased volume accompanying the breakout reinforces the notion that buyers are stepping in, ready to propel the price higher.
With positive trends in the semiconductor sector and AVGO's strong financials, including solid earnings growth and strategic partnerships, the stock could see a sustained rally. As the market recognizes its value, AVGO is well-positioned to attract more investor interest, making it an appealing opportunity for bullish investors.
Broadcom (AVGO) – Decision Point Near Major ResistanceBroadcom ( NASDAQ:AVGO ) is approaching a critical level with a potential double bottom pattern in play. The stock is facing strong resistance at $167.50, where both horizontal resistance and the descending tops trendline converge. Breaking through this key zone could lead to a run toward the all-time high of $188.33.
On the other hand, support remains firm with rising lows and backing from the 200-day moving average. This keeps the bullish case alive, but we’re likely to see the stock consolidate into a tighter range ahead of the earnings report at the end of the year, which could serve as the catalyst for the next big move.
I’m watching for a clean breakout above $167.50 or a retest of the support around the rising trendline for possible entries.
Do you think Broadcom can break out before earnings, or is a retracement more likely?
Technical Analysis of Broadcom Inc (AVGO)The stock ( AVGO ) is in a long- and medium-term uptrend.
In the short term, it is undergoing a retracement phase, having been rejected twice by the POC 1, which reflects the volume area starting from November 2023, when the latest uptrend began.
After the second rejection from POC 1, which confirms its strength, the price is heading towards the $171 area, corresponding to a second volume zone, POC 2. This area acts as resistance, having already rejected the stock once, and we will see if it holds again.
To summarize, in the short term, the stock is retracing, using POC 1 as support and POC 2 as resistance. This phase has resulted in lower highs and higher lows, forming a pattern known as a symmetrical triangle.
The symmetrical triangle is generally considered a continuation pattern, meaning that the breakout often (but not always) occurs in the direction of the trend prior to the triangle's formation. However, it can also signal a consolidation phase or market indecision.
Interpretation:
Bullish Scenario: If the price breaks the resistance (the descending trendline of lower highs) and moves above POC 2, this would be a bullish signal.
Bearish Scenario: Conversely, if the price breaks the support (the ascending trendline of higher lows) and moves below POC 1, this would be a bearish signal.
It is important to confirm the breakout with an increase in volume, as a breakout without strong volume may indicate a false signal.
AVGO: This is a CRITICAL support level! (D&W analysis)Looking at the daily chart of AVGO, we observe a hammer candlestick pattern forming after an exhaustion gap, signaling a potential reversal. This hammer, typically seen at the end of a downtrend, indicates that the sellers may be exhausted, and a reversal could be on the horizon. Additionally, the gap left behind earlier this month has been almost filled, which often acts as a catalyst for a shift in market sentiment. The key resistance level is the $150.11 zone, which, if broken, could suggest further upside towards $172.42.
On the weekly chart, AVGO remains supported by a long-term ascending trendline that has held through recent pullbacks. The price also shows a bounce from the 21-week EMA. If the hammer on the daily chart leads to sustained upward momentum, it could trigger a continuation of the broader uptrend seen on the weekly timeframe. However, if the price fails to maintain support around the trendline, a deeper correction could ensue, with the next major support level around $130.25.
In summary, the daily chart suggests a potential short-term reversal after an exhaustion gap and hammer pattern, while the weekly chart maintains a bullish structure as long as the trendline and 21-week EMA continue to hold.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
Broadcom Stock Struggles After Disappointing EarningsBroadcom ( NASDAQ:AVGO ) Faces Challenges Post Earnings: What Investors Need to Know?
Broadcom Inc. (NASDAQ: NASDAQ:AVGO ), a key player in the semiconductor and software sectors, has seen its stock tumble after the company reported a loss in its fiscal third-quarter earnings. The loss was primarily attributed to merger-related expenses and amortization costs associated with its recent acquisition of VMware. Here, we dive into the fundamental and technical aspects of Broadcom’s stock, analyzing the challenges and opportunities that lie ahead.
Earnings Report Highlights:
- Broadcom swung to a net loss of $1.875 billion in its fiscal third quarter, compared to a profit of $3.3 billion in the same quarter last year.
- Adjusted earnings, which exclude significant acquisition-related expenses, came in at $1.24 per share.
- The company’s revenue for the quarter met expectations, but its forward guidance of $14 billion for the fiscal fourth quarter fell just shy of analyst predictions.
- CEO Hock Tan emphasized the continued strength of Broadcom’s AI-driven semiconductor solutions, noting a projected $12 billion in AI-related revenue for the full year, driven by ethernet networking and custom accelerators for AI data centers.
Merger Impact:
The recent acquisition of VMware has added significant restructuring costs to Broadcom’s financial statements. The integration of the software firm is crucial for Broadcom's long-term strategy of diversifying its revenue streams beyond semiconductors, particularly as it aims to capitalize on the rapidly growing demand for AI and data center solutions.
Market Reaction:
Broadcom’s stock dropped over 6% in after-hours trading following the earnings release. Despite this pullback, the stock has risen approximately 40% year-to-date, benefiting from the market’s appetite for AI-related growth stories. However, the recent dip underscores investor concerns about the near-term impact of acquisition-related expenses and the company’s modest revenue outlook.
Technical Analysis
Symmetrical Triangle Breakdown:
Broadcom’s stock has been consolidating within a symmetrical triangle pattern on declining volume since mid-June, a formation that often precedes a breakout or breakdown. The recent disappointing revenue outlook has pushed the stock below the triangle’s lower trendline, indicating a bearish breakdown that could signal the start of a new downward trend.
Key Support Levels to Watch:
1. $141 Level: This level is near a consolidation zone that formed between March and June, marking the first potential area of support. If this level holds, it could provide a buying opportunity for investors looking for a near-term bounce.
2. $120 Level: Should the stock fall below $141, the next significant support lies at $120, an area aligned with prominent swing lows from earlier in the year. This level could attract buyers who see the pullback as a chance to enter at a more attractive price.
3. $110 Level: Further downside could take Broadcom to $110, near the low of a retracement that occurred in early January following a strong December rally. This level could serve as a critical test for Broadcom’s longer-term uptrend.
RSI and Market Sentiment:
Currently, Broadcom’s Relative Strength Index (RSI) hovers around 40-45 in premarket trading, placing the stock in oversold territory. This indicates that the recent sell-off may be overextended, potentially setting up the stock for a short-term rebound. However, the broader sentiment remains cautious given the company's near-term financial headwinds.
Outlook for Broadcom: Is the Stock a Buy, Sell, or Hold?
Broadcom's mixed earnings report and subdued revenue guidance have introduced a degree of uncertainty into the stock’s near-term trajectory. While the company’s ongoing integration of VMware and its focus on AI and data center solutions present long-term growth opportunities, the immediate impact of acquisition costs and a lukewarm revenue outlook have weighed heavily on investor sentiment.
For those with a long-term investment horizon, the current pullback could present a buying opportunity, especially if Broadcom ( NASDAQ:AVGO ) manages to stabilize at one of the key support levels mentioned. However, traders should remain vigilant for potential further downside, particularly as the stock navigates the aftermath of its recent technical breakdown.
In summary, Broadcom’s fundamentals remain strong, underpinned by its leadership in AI-driven semiconductor solutions. However, the stock’s technical indicators suggest caution is warranted in the short term. Investors should watch closely for signs of stabilization before committing new capital, particularly given the broader market's current volatility.
Broadcom's Analysis: Is the Chipmaker Ready for a Comeback?Key Takeaways:
- Broadcom ( NASDAQ:AVGO ) shares have reclaimed their 50-day moving average after a steep correction but face volatility ahead of the upcoming Q3 earnings report.
- Investors are focusing on Broadcom's AI chip sales growth and its full-year outlook amid rising AI demand.
- Key technical levels suggest potential volatility, with both downside and upside price targets in play.
Broadcom’s Resurgence and Challenges
Broadcom ( NASDAQ:AVGO ), one of the leading chipmakers, is preparing to release its fiscal Q3 earnings report, with investors keenly watching its AI sales growth and forward-looking guidance. Recent quarters have seen Broadcom ( NASDAQ:AVGO ) benefit from increased demand for its custom AI chips, a trend that has bolstered its financial performance. However, after peaking in mid-June, Broadcom shares faced a significant sell-off, falling as much as 31% before mounting a recovery.
The stock managed to reclaim its 50-day moving average by the end of August, signaling a potential shift in momentum. Despite this recovery, it's crucial to note that the buying activity occurred on declining volumes, which often points to a lack of strong institutional support. This situation sets the stage for heightened volatility as the company approaches its earnings announcement.
Technical Analysis: Key Levels to Watch
1. Decreasing Volume and Recent Recovery:
The recent bounce in Broadcom ( NASDAQ:AVGO ) shares is noteworthy, as it reclaimed the 50-day moving average—a critical technical indicator suggesting near-term strength. However, the recovery on declining volume is a cautionary signal. Institutional investors typically drive strong moves, and a lack of their involvement could suggest that the current recovery lacks conviction.
2. Lower Price Levels to Monitor:
- $157 Level: This support zone, approximately 4% below the recent close, aligns with previous swing lows from June and August. If Broadcom's stock falls below this level, it could signal further downside pressure.
- $141 Level: Should the $157 level fail to hold, $141 becomes the next critical area to watch. This level represents a prior consolidation zone where the stock traded sideways between March and June. Investors may see this as a potential buying opportunity if the stock reaches this area.
3. Higher Price Levels to Watch:
- $168 Resistance: A move higher could propel the stock to $168, where it may encounter resistance. This zone corresponds to several gap trading levels formed in June and July, as well as the highs from August.
- $195 Target Above All-Time High (ATH): For those looking beyond the immediate resistance, Broadcom could target $195. This level is calculated by projecting the stock’s previous trending move from December to March and repositioning it from the August swing low. This upside target would place Broadcom about 5% above its all-time high, indicating significant potential for a breakout.
AI Growth as a Catalyst
Broadcom’s fundamentals remain strong, with AI chip sales serving as a primary growth driver. The company’s custom chips are in high demand as industries increasingly rely on artificial intelligence, a sector expected to continue expanding in the coming years. Investors will be closely examining the company's guidance during its Q3 report, looking for signs of sustained momentum.
However, Broadcom ( NASDAQ:AVGO ) is not without its challenges. The broader tech sell-off and profit-taking after the company's 10-for-1 stock split in July have weighed on share prices. Despite this, analysts maintain a "Strong Buy" rating, citing the company’s leading market position and the growing importance of its AI chips.
Technical Outlook: Mixed Signals
As of now, Broadcom shares are down 4.54% in Tuesday's trading, with an RSI of 46. The RSI nearing the oversold region suggests that the stock could be positioning itself for a potential bounce. However, given the declining volumes and lack of institutional activity, investors should remain cautious and closely watch the aforementioned technical levels.
Broadcom’s stock trading above key moving averages offers a glimmer of hope, yet the market’s reaction to the upcoming earnings report will be pivotal. Any positive surprise in AI sales growth or forward guidance could provide the necessary catalyst for Broadcom to reclaim its highs and potentially push towards the $195 target.
Conclusion: A Critical Juncture for Broadcom
Broadcom’s journey back to its highs is fraught with both opportunities and challenges. The technical setup suggests a stock on the rebound, but with caution flags raised due to the lack of volume support. Fundamentally, the chipmaker’s focus on AI positions it well for future growth, but investors will need to see continued execution and positive guidance in the upcoming earnings report.
For now, NASDAQ:AVGO remains a stock to watch closely, with key support and resistance levels defining its near-term path. Investors should be prepared for heightened volatility but also recognize the potential upside if Broadcom’s earnings and outlook exceed expectations.
$AVGO | Watchlist | Buy Limit |Technical Confluences:
- Stochastics is moving towards Oversold conditions
- Elliot Wave count seems to have completed a Wave 4 (A,B,C count) and is starting it's Wave 5 move (assuming it is not an extended Wave 4
- Price has formed new Supply Zone area with the price rejecting that Zone 3 times and has formed a descending Trendline
Fundamental Confluences:
- Broadcom is considered a leader in semiconductor domains and it has a diverse product range; making them sought after in technological ecosystem
- Good management team that focuses on M&A for strategic growth and market pentration
- Good amount of FCFs which helps in their dividend policies
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NASDAQ:AVGO will be releasing it's earnings soon and if there is any opportunity arising, I have placed orders to buy AVGO at my Buy Limit Zone areas.
If earnings is stellar, price should continue to test the Supply Zone again and if that breaks, I will likely aim for a Buy Stop order above the Supply Zone.
Will be putting this on my Watchlist.
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AVGO may confirm the daily 10 SMA this week.NASDAQ:AVGO is on watch to confirm the daily 10 SMA ahead of its earnings this week, which are on Thursday at 4:15 PM EDT. Many names in the NASDAQ:NDX are heading into this week just below the daily 10 SMA, including NASDAQ:META NASDAQ:TSLA and the semiconductor ETF NASDAQ:SMH
If these names are able to build above Friday's high, they have space to trade up to the next daily supply.
Broadcom: Breakout imminent I think the (1h) chart is self explanatory. We see a sideways channel. in the latest swing low, the pullback to the lower trendline did not happen anymore. Instead it went up again and already slightly took the resistance. I anticipate a strong breakout tomorrow (Monday 2nd of September)
Bären verlieren = Bears loose
NASDAQ:AVGO
Broadcom Inc. (AVGO) Shares Drop Over 4%Broadcom Inc. (AVGO) Shares Drop Over 4%
As shown by the chart, yesterday, shares of Broadcom Inc. (AVGO)—a US technology company ranked in the top 10 by market capitalisation—were among the worst performers in terms of price movement.
This is a warning sign for those investing in semiconductor manufacturers, considering that:
→ Tomorrow, data on Nvidia’s second-quarter performance will be released;
→ Since mid-June, AVGO's share price has been underperforming the stock index.
A technical analysis of the AVGO chart provides further grounds for concern:
→ In 2024, the price formed an ascending channel (shown in blue), which remains relevant for now, despite a drop below the lower boundary on 5 August.
→ Price action in August indicates (marked by an arrow) that the median line of this channel, reinforced by the psychological level at $170, has now assumed the role of resistance.
→ In mid-July, there was a 10-for-1 stock split. It was expected that this would make investments in Broadcom Inc. more accessible to a wider range of market participants, but in reality, the price has fallen since then.
→ Since mid-June, when the RSI indicated extreme overbought conditions following the release of first-quarter results (a sign of market hype), the price has been increasingly forming the outlines of a descending channel (shown in red).
If AVGO's share price continues to underperform the market, it could lead to further bearish attacks on the lower boundary of the ascending channel.
Meanwhile, analysts remain optimistic. According to TipRanks:
→ 23 out of 24 Wall Street analysts recommend buying AVGO shares;
→ The average price target for AVGO shares is $196 (a 23% increase from current levels) within the next 12 months.
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