Watch this level on $AVGO – October 11, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Broadcom ( NASDAQ: AVGO ).
Broadcom ( NASDAQ: AVGO ) is in a well-defined uptrend and above all the major moving averages. This sucker has been trending for months, but it hasn’t been a perfectly smooth ride. There have, in recent history, been some pretty deep pullbacks to the 200-day moving average.
We had a pullback here in August, and then a retest in September. Now, this is actually a good thing because it shows exactly where the buyers are willing to step in, especially when you get a pullback, and then another pullback, but the second pullback is a higher low. We rebounded off of the higher low, and now are consolidating just around these previous highs from the summertime.
Today, Broadcom ( NASDAQ: AVGO ) opened lower and flushed any weak hands out under the 8-day exponential period moving average, but closed above the 8-day. So again, it shows that the buyers are willing to step in, even when the stock is pulling back. So that’s a stock that we want to pay attention to because, again, it’s showing institutional ownership. And people are willing to come in and defend their position when it does pull back or have a lower open, like we had here today.
What I would do on this stock is, watch for a breakout above these two highs right around 186.50. I think you want to watch for a move above 186.50 into next week, coming on volume. That would signify a breakout and a potential continuation of this uptrend.
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