Trade of the Day - Broadcom Inc. (NASDAQ: AVGO)
15 Mar 2024Trade of the Day
Broadcom Inc. (NASDAQ: AVGO)
(Current Price: US$1262.27) – TECHNICAL SELL
Sell stop: US$1247.00 Stop loss: US$1285.00 (-3.05%)
Take profit 1: US$1200.00 (+3.77%) Take profit 2: US$1145.00 (+8.18%)
(1) & (2): Broadcom Inc. could break an uptrend channel it is currently trading in, as the price was unable to hold the previous horizontal resistance breakout level of US$1285 as support upon a retest, which provides a bearish signal
(3): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bearish view with decreasing momentum, following bearish divergence signals with a lower high formed while the price made a higher high
We expect the price to pullback further upon breaking down the uptrend channel, towards take profit level 1 at US$1200.00 to retest a swing low support formed in late February
The price is expected to extend its bearish momentum towards take profit level 2 at US$1145.00 to retest a previous swing high resistance formed in December 2023
The expected timeline of the trade is 1-8 weeks from the date of report issuance
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About the author
Zane Aw
Technical Analyst
PSR
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).
About the author
Zane Aw
Technical Analyst
PSR
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).