Looking at the technical picture of the Broadcom Inc. stock (NASDAQ: AVGO) on our daily chart, we can see that, after reversing higher in the end of January, the share price has been forming higher lows, while trading above a short-term upside line taken from the low of January 24th. That said, the stock is struggling to go for a higher high, as the 614.16 hurdle, which is the highest point of February, remains a difficult barrier to overcome. In order to aim for higher areas, a push above that hurdle is needed.
That breakout will confirm a forthcoming higher high, this way potentially attracting more buying-interest into the game. AVGO could travel to the 630.49 hurdle, marked by the high of January 12th, where a temporary hold-up might occur. However, if the buyers stay active, they could overcome that hurdle and aim for the 647.39 zone, or even the 656.94 level, marked by the inside swing low of January 4th.
The RSI is currently pointing lower but continues to run above 50. The MACD is flat, at the moment, but remains above zero and the signal line. Overall, the two oscillators are showing positive price momentum, which supports the above-discussed scenario.
Alternatively, a break below the aforementioned upside line could scare off some buyers from the field. An additional drop below the inside swing high of March 14th may open the door for further declines. That’s when we will aim for the 562.32 obstacle, or for the 548.02 level, marked by the lowest point of February.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.