AVGO trade ideas
Avgo - Continue to rally ?Managed to climb and stay above 500 pychological level after moving sideway between 420 to 500 for most of 2021.
Nice and strong uptrend with EMA20 to EMA200 line up.
FiFT +ve indicating strong bull.
Weekly Chart MCDX 75% but daily chart MCDX banker still low with only 6%.
Fibo target 570. Support 480
Based on Finviz, Avgo gross margin is 60%, RoE 24%. Analyst's target price 551
Plan :- Monitor and wait for price pullback to near EMA50. Valid only if price stay above trendline.
A Review of AVGOWas asked to take a look at AVGO. In an interest to continue learning and stretching myself I thought I would take it on. Here’s where I landed.
The stock spiked hard starting 25 October and gained nearly 17% in 23 days vs the trend it was on with nearly 14% over 146 days. This looks like an anomaly and maybe some outside factors played a role in this spike. I would expect it to settle back in to it’s health trend soon. It’s certainly on the rise, but working on the data alone I wouldn’t expect it to continue at this new aggressive rate. It’s more likely it will establish a new resistance level, but my guess is it will settle back into it’s current trend and coming back to this $560 range in a more healthy way in around Feb/Mar of 2022. If a new resistance level is established we could see it hitting $600+ in Feb/Mar 2022 instead.
I took a not so scientific look at the resistance levels. It appears the stock skips along the resistance line for an average of 60 days (looked at this pre-COVID and also what it’s doing now - it can be longer or shorter). At the end of each cycle a new resistance level is created. This stock was about establish a new resistance level when it broke out.
Semiconductors sector is an interesting industry. If Broadcom keeps delivering and the demand keeps increase; I expect it to continue to rise. Certainly not financial advise and I’m still learning here. Again, if I missed anything or if there are any tools, indicators or strategies that I could be applying to get better results I would love to hear them.
AVGOHighest close ever today after being range bound since the beginning of the year. Wouldn't be surprised to see it $100 higher by year-end.
$AVGO I guess semiconductors looks readyNASDAQ:AVGO
Many semiconductors are waiting to break out. $AVGO,$INTC. $AMD is faster.
$AVGO Broadcom Breakout Pt's
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Broadcom Makes a Higher LowSemiconductor stocks have struggled along with the broader market, but a few have managed to outperform. One of them is Broadcom.
The most interesting feature on AVGO’s chart is the series of higher lows, including Monday’s dip under $475. In contrast, the Nasdaq-100 made a lower low versus August.
Next, the bounce is occurring at the 100-day simple moving average (SMA). That line has provided support since the beginning of June.
Third, stochastic recently dipped to an oversold condition.
Given the forward calendar, with earnings over the next few weeks, traders may view this an interesting moment for a stock showing signs of resuming its longer-term uptrend.
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9/19/21 AVGOBroadcom, Inc. (AVGO)
Sector: Electronic Technology (Semiconductors)
Current Price: $506.00
Breakout price trigger: $488.40 (hold above)
Buy Zone (Top/Bottom Range): $501.70-$488.40
Price Target: $538.00-$541.80
Estimated Duration to Target: 55-70d
Contract of Interest: $AVGO 11/19/21 520c, $AVGO 11/19/21 540c
Trade price as of publish date: $11.90/cnt, $5.90/cnt
AVGOHe can calmly continue and finish off the level of 10% - this is the minimum. Of course, if the index correction does not happen
$AVGO with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $AVGO after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 84.62%.
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$AVGO What was Resistance, Should Become SupportWould like to see $AVGO consolidate above $490 level for couple more days (orange bars). What was resistance should become potential support.
I've tried $AVGO before, you can see my previous buy and sell on the chart.
AVGO breaking outAfter forming long base, AVGO looks like coming out of channel and may break for all time highs
AVGOEarnings on Thursday 9/2. There is a 24 point move priced in.
Calls can work over 495.
Lotto Trade Idea: 520C
AVGO is breaking out of huge resistance areaNASDAQ:AVGO closed above a long time resistance level with good potential to create new historic highs in the near future IF if we do fall back into consolidation area.
Targeting first level 508.9
Second level 533.1
Fingers crossed
Ever Hear Of A Coiled Spring?AVGO daily chart is setting up for a huge breakout, should the right market conditions present themselves.
Trading at only 14x FWD EV/EBITDA, this cheap semi conglomerate has a lot of upside should XLK continue its outperformance and the market remains how it has been.
Earnings revisions have been trending upwards as well.
Fiscal EPS Esti YoY Gwth 1M Trend 3M Trend 6M Trend
Oct 2021 27.60 24.56% 0.00% 2.44% 4.68%
Oct 2022 30.11 9.10% 0.00% 3.60% 6.22%
Oct 2023 31.98 6.18% 0.00% 4.22% 24.76%
Oct 2024 31.87 -0.33% 5.92% 16.48% -
Oct 2025 33.29 4.46% 6.97% - -
Something to keep an eye on.
Cheers!
Broadcom (Nasdaq: AVGO) Technology | SemiconductorBroadcom has been consolidated in an ascending triangle chart pattern.
2 important points to be considered.
1) There is still some seller to be absorbed at 493.
2) Earning result in Sept
We are expecting some surprise of the good result may break out of the chart pattern.
Tight Squeezes Across the Chip SpaceSeveral chip stocks are squeezing into tight ranges with breakout potential.
Notice how Broadcom briefly knifed under its 50-day simple moving average (SMA) on July 2. (It followed an antitrust complaint.) The bears quickly surrendered, and a week later AVGO had its highest close since mid-April. So you have a false breakdown and a strong bounce outside of the range. That could draw some buyers from the sidelines.
That could be even more true now because the price channel has been abnormally tight, with Bollinger Band Width recently hitting the lowest level in 5+ years.
AVGO isn’t the only chip stock in that’s been treading water as business remains strong. Taiwan Semiconductor’s band width recently hit the tightest reading in a year. TSM also just bounced at its 50-day SMA, a line that was resistance in April but is now support:
Both companies have also been straddling their 100-day SMAs. TradeStation data uncovered that Lam Research , NXP Semiconductors and Teradyne also touched that line on Friday. ( Qualcomm and Microchip Technology were at their 200-day SMAs.)
It’s an interesting time for the industry because catalysts like 5G upgrades and chip shortages remain in effect. Sentiment recently shifted away from cyclical stocks like industrials toward growth stocks like software. But interest rates leaped on Friday as cyclical stocks rebounded. More cyclical strength could draw money back toward chips (which often follow industrials ). If that happens, these names resting along their 100- and 200-day SMAs could begin sustained moves.
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