AVGO trade ideas
AVGO Forms an Asymmetrical Triangle Ahead of Earnings SeasonAVGO is slowly working to complete the Asymmetrical Triangle candlestick pattern that started in June.
Broadcom correction possibly completeBullish reversal on all indicators.
Sell side decreasing.
Lower trendline support. Approaching apex.
Elliott wave correction possibly complete.
Price target $322 13% upside to resistance.
Average analysts price target $321
Average analysts recommendation Overweight
P/E ratio 39
Yield 3.77%
Short interest 1.24%
Company profile
Broadcom, Inc., is a holding company, which engages in the design, development, and supply of analog and digital semiconductor connectivity solutions. It operates through the following segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial and Other. The Wired Infrastructure segment provides semiconductor solutions for enabling the Set-top Box and broadband access markets. The Wireless Communications segment includes mobile handsets and tablets. The Enterprise Storage segment offers storage products the enable secure movement of digital data to and from host machines such as servers, personal computers, and storage systems to the underlying storage devices. The Industrial and Other segment consists of a variety of products for the general industrial and automotive markets. The company was founded in 1961 and is headquartered in San Jose, CA.
AVGO Short to $260Looks like it can not get back over the 200MA, Tripple top painted in, expecting one more leg down.
AVGO Flag breakdownAVGO closed for the third day under the 200 sma, bearish sentiment in the SPY index and semiconducter index. Looking for a quick breakdown to the $262 level
Buying Broadcom(AVGO) bullish trend Hey guys,
Now is a great to buy the recent dip in Broadcom as the upward trend is still in place and is holding support not too far below at the 50day & 200 day moving average. The company just released earnings and the stock didn't have much of a reaction (besides selling off just like the majority of the market). I like to trade these steady/slow winners with stock options because a small % percentage win can be worth alot more with long call options.
For today, we can buy the January 2020 strike 280 call for $23.60 per contract. That contract will allow us to trade 100 shares of AVGO for $2,360 investment. If the stock returns to the $300 per share, this option will make atleast 10% in 1.5 months, and if the stock jumps within the next two weeks, we can make 20%-30%. As with all investments, their is risk. The immediate risk is that the stock could retest the 50/200 day moving average which would be a minimum of -20%. However, with our option we have 4 months for the stock to move approximately 5.5% in our direction. That 5.5% is deceiving though because you can choose to sell your option at any point. If the stock jumps 3% tomorrow, you'll be making a nice profit. You may want to sell/ hold or trade for the big trade if your trading a breakout to all time highs.
The big trade can work, although the odds are against you. But with good timing, you can make good, medium gains in the 30%-35% which are my favorite. For example, for me to make 30% and giving my options less than 2 months, I need the stock to reach $305 per share. Just 3 days ago, the stock was at $301 and all I will need is a bounce back to retest its high and go up just 1%. So in essence, it could go to $305 within weeks and not months.
Other info:
1) RSI for the stock is at 56 which is slightly bullish, but not overbought. So it has room to go higher.
2) Volatility of the stock options just sold off because of stock earnings. With volatility being cut almost in half, buying calls are preferred. Currently, IV rank is at 28%.
3) Stock touched the 50 day moving average yesterday. So in essence, we're buying it cheap over the lasts 50days.
4) Lastly, Broadcom may have a technical wedge breakout. With a breakout, the stock could easily break higher to retest all time highs at $320 a share. If that happened over the next 4 months, this option would be worth + 85%. Now I don't try to hit the big winners, but if I do, I will gladly take it.
Thanks for reading.
AVGO triangle pattern $56 measured moveThere is a large triangle pattern forming on AVGO, just before earnings! Could be setting up for an extremely euphoric or extremely devastating price movement.
AVGO share prices broke through a critical trend lineAVGO - Broadcom share prices broke through a critical trend line in the previous session at 284.70 highlighted in my earlier post and pushed it further out on Thursday's trading session to 291.02 up by 2.83%. Share prices managed to close above 289.20 resistance level and will be looking to have a go at 295.45 price target. If it is successful at 295.45, then we might see a test at 303.50. The support price level remains at 289.20 and 284.70
AVGO shares jumped on hopes of a U.S.-China trade settlementAVGO- Broadcom share prices jumped from its previous close at 276.15 and opened today's session at 281.85. AVGO shares maintained its position well above 280.20 support level and finished the trading session at 283.37 up 2.65%.
The share prices currently rest at around 284.70 support level and a crucial long term resistance trend line which could determine its next move. AVGO share prices need to break and hold above the long term resistance trend line to proceed to its next target at 289.20. Share prices could retreat to 280.20 if it fails at 284.70. Price targets are estimated at 289.20, 295.45, and 300.00
AVGO Bearish GartleyJust reached the PCZ of a bearish Gartley. Target level ~$250 (1.618% retrace, and key support). Does it have the momentum to play out?
AVGO Ascending Triangle ContinuationAVGO is in an ascending triangle pattern and seems to be breaking to the upside. Price closed above a key resistance point and 100dma a previous level that was rejected upon multiple gap ups. Consolidation is also above the price volume profile pivot which acted as support the last 2 pull backs. Natural extension and 1.618 fib is around the double top. I have a bullish outlook on the semi conductor sector which AVGO is a large component of so they should go up together.
Daily AVGO stock price trend forecast analysis11-JUL
Price trend forecast timing analysis based on pretiming algorithm of Supply-Demand(S&D) strength.
Investing position: In Falling section of high risk & low profit
S&D strength Trend: About to begin a rebounding trend as a downward trend gradually gives way to slowdown in falling and rises fluctuations
Today's S&D strength Flow: Supply-Demand(S&D) strength flow appropriate to the current trend.
read more: www.pretiming.com
Forecast D+1 Candlestick Color : GREEN Candlestick
%D+1 Range forecast: 3.0% (HIGH) ~ 0.2% (LOW), 1.2% (CLOSE)
%AVG in case of rising: 2.0% (HIGH) ~ -0.6% (LOW), 1.0% (CLOSE)
%AVG in case of falling: 0.4% (HIGH) ~ -2.0% (LOW), -1.4% (CLOSE)
Bullish B/setupcurrently trading above the 80MA on the weekly , broke above old resistance and is now testing new support looks good for a long position after approval from price action
Sell Broadcom on this Symantec Acquisition, $20B Down The TubesBloomberg broke the news on Wednesday July 3rd, 2019 that Broadcom is in talks to buy struggling Symantec. This is a terrible idea on many fronts and $AVGO closed down 3% on the news. I believe that investors do not want this semiconductor company to waste $20 billion on a cybersecurity company (and why pick the one that seems to be struggling the most?). Certainly makes sense that we head lower over the next few days/weeks.
A few references:
AbbVie buying Allergan - stock closed down 15%
Salesforce buying Tableau - stock closed down 3% (but it hasn't dropped further)
AVGO stock price trend prediction by supply-demand strength.28-Jun NASDAQ:AVGO
Price trend forecast timing analysis based on pretiming algorithm of Supply-Demand(S&D) strength.
Investing position about Supply-Demand(S&D) strength: In Rising section of high profit & low risk
Supply-Demand(S&D) strength Trend Analysis: In the midst of an upward trend of strong upward momentum price flow marked by the temporary falls and strong rises.
Today's S&D strength Flow: Supply-Demand(S&D) strength flow appropriate to the current trend.
read more: www.pretiming.com
D+1 Candlestick Color forecast: GREEN Candlestick
%D+1 Range forecast: 4.0% (HIGH) ~ 0.4% (LOW), 2.1% (CLOSE)
%AVG in case of rising: 2.1% (HIGH) ~ -0.5% (LOW), 1.5% (CLOSE)
%AVG in case of falling: 0.5% (HIGH) ~ -1.7% (LOW), -0.8% (CLOSE)
Broadcom fate depends on China tradeAVGO earnings report:
AVGO Q2 earnings surpass estimates
Q2 quarterly report represents an earnings surprise of 0.77%. A quarter ago, it was expected that this chipmaker would post earnings of $5.19 per share when it actually produced earnings of $5.55, delivering a surprise of 6.94%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
However...
We saw a drop of 12% after hours. Today it regain 6%. If AVGO stays above the 200SMA we could see a big potential upside.
Please check chart for more information on specifics.
$AVGO 7% Buyback program will protect you Portfolio.The first quarter of 2018 AVGO had a similar downbeat report and earnings call, they stock sold of before hitting a all time high 1 year later. This time round the stock has rebounded 5% alone from the pre market lows, and has moved back above the 200ma which is a critical level, if it can close at these levels buyers will flock back in next week if the market sentiment stays stable. We don't really see any reason to be selling, our expectations were not high in the first place when you consider the headwinds in the market including APPLE, Huawei and MR TRUMP's trade war.
AVGO Friday Day Trade Go !AVGO is having some volume today Friday. its currently above the 256.62 daily pivot that i have drawn. For a Short it needs to get below this pivot and make lower lows and lower highs. For a Long it needs a lot more work but it can get above its 200 SMA (brown color) and go up to its 20 EMA (green) that's about 15 points range. However its a lower probability trade as the Daily Chart shows AVGO making a lower high and a lower low candle stick pattern, basically the Daily chart is showing more weakness (bearish) than strength (bullish). A short is a more high probability trade than a long. The market (SPY) needs to be in alignment for this trade to work.
$AVGO analysis from this gap down on earningsOn the weekly chart it looks like they wanted to bring it down to 50 SMA for support. If that holds then thinking we have a gap down to rip up on better than expected earnings. If it breaks then bearish. Watching the price action in comparison to 50 SMA at 254.68
Broadcom: Pre-Earnings Pullback into Bullish BreakoutAVGO makes networking semiconductors and other products in so many household brands of consumer equipment, and I was floored to see how bad of a beating they took with the May trade war fear correction. After this consolidation, Broadcom's stock price now has room to bounce out of earnings with a healthy upside potential to make up for ground lost to set new highs. Depending on how the market reacts to earnings tomorrow night, this has the potential to have a strong growth tech upside. The contract renewal with Apple Computers for components is also going to be a major highlight of that earnings call, too.
The price just rose to ping-pong a little between the 50 and 200 day averages with some upward momentum to keep going. The technicals have RSI showing a slow cool off from last week's rally without much of a loss but still bullish above 50 with lots of upside potential. MACD has crossed over the signal line for a bullish reversal, but is still negative showing that a coming rally may still be volatile until it takes off under full steam. Rate of change is breaking positive and sloping upward in a technical trend reversal. ADX is also flashing a possible sharp trend reversal with DI+ just rising over DI- with some consolidation action that will definitely break on earnings. I also see a very narrow cup and handle that is probably only going to last one or two more days at max before shooting for the sky.
If this plays out the way I think it can, money will start to pour into the stock in the morning as investors seeking the earnings payout buy this short consolidation (with the rest of the S&P 500) to front-run the crowd. If their earnings call is strong, focuses on the Apple news, and calms fears of the US-China trade dispute, this will be very profitable very quickly.
