AVGO Near Critical Reversal – Can Bulls Hold This Level?Technical Analysis (TA):
1. Trend & Structure:
* AVGO remains in a clear downtrend, showing multiple Break of Structure (BOS) events.
* Change of Character (ChoCH) attempts suggest buyers are stepping in, but confirmation is needed.
* Resistance Levels: 194 (Call Resistance), 220-240 (Major Supply Zone).
* Support Levels: 180-187 (Demand Zone & Highest Negative NETGEX).
2. Reversal Zone:
* AVGO is testing a demand zone between 180-187.
* If buyers hold above 187, there is potential for a retest of 194, then 220.
* If price fails below 180, a larger sell-off toward 160-150 is likely.
3. Indicators:
* MACD: Neutral, with slight momentum fading.
* Stochastic RSI: Oversold, indicating potential upside bounce.
* Volume: Recent uptick in buying at support suggests a possible reversal attempt.
Options GEX & Trade Setup:
1. Call Walls (Resistance):
* 194 – First major test for bulls.
* 220-240 – Strong resistance zone if price breaks higher.
2. Put Walls (Support):
* 187 – Highest negative NETGEX, potential bounce area.
* 180-160 – Failure here opens the door for a deeper correction.
3. Option Trade Ideas:
* Bullish Setup: If price stays above 187 and confirms strength, consider April 200C targeting 194-200.
* Bearish Setup: If AVGO breaks below 180, consider March-April 170P targeting 170-160.
Thoughts & Conclusion:
AVGO is sitting at a make-or-break zone. If buyers can hold 187 and push above 194, momentum could shift bullish. However, if sellers reclaim control and price breaks below 180, further downside acceleration is likely.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk accordingly.
