Shares of Broadcom Inc (NASDAQ:) have been trading sideways in a narrowing range since mid-February. This healthy consolidation followed a 220% gain off the March 2020 lows. As the week comes to an end, the stock is poised for an upside breakout.
Solid footing is in place. The 50-day moving average has been very supportive since the start of June. The last , a beat, was released on June 3rd.
Despite being within striking distance of new highs, AVGO is far from overbought in both the daily and weekly MACD indicators.
On the downside, a close back below $455.00 would violate last week’s low, sending a clear warning sign that more sideways action is ahead.
Note: We have no position.
You can read Gary S. Morrow’s original post here.
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