4AVGO trade ideas
Broke resistance, watch for pullback to $227.65 for a long entry$227 is a key level, the price has broken through and will likely retest before continuing upwards. $227.65 Entry, SL @ $226, TP @ $248
$AVGO Swing trade idea$AVGO Swing trade idea - Nice gap since two days, now its holding 100SMA. Let's wait if it tries to catch 20SMA in next two days. Then our limit price will get triggered.
Broadcom investors still lamenting the CA Technologies acquisitiBroadcom shares are down 15% since the company announced the intention to buy CA Technologies for $18.9 billion in mid-July. Investors are skeptical about the deal. But a few experts believe that the deal will add synergies over the long term as the CA Technologies mainframe business is a cash cow.
The shares are now trading at an attractive valuation of 10 times 2019 earnings estimates. Earnings are expected to grow at a CAGR of 14% over the next five years.
www.finstead.com
AVGO one of the few tech hardware stocks strongAVGO nice earnings beat and guidance. This is a AAPL supplier which might of added to AAPL relative strength Friday. The market sentiment indicators are overly pessimistic right now. That being the case AVGO likely a good continuation trade on market strength.
GAP UP ON STRONG VOLUMNE + CLIMB ABOVE 50-DAY LINEToday Broadcom gapped up on more than double average daily volume as a result of reporting strong earnings. In the process, the stock climbed above its 50-day moving average line, an intermediate-term bullish signal.
According the the WSJ, this stock has an OVERWEIGHT consensus analyst rating and an average price target of $287.81, almost 24% higher than today's closing price.
THE WEEK AHEAD: AVGO EARNINGS; EWZ, GDX, XLooking at what's left of the trading week post-Labor Day ... .
AVGO (announcing earnings on Thursday after market close) is the only fairly liquid underlying that interests me for an earnings-related volatility contraction play (rank 57/30-day 37). The 63% probability of profit Sept 21st 200/205/235/240 iron condor pictured here is preliminarily going for 1.65 with a theta of 5.17 and a net delta of .67 with wide bid/ask showing in the off hours. Unfortunately, those 5-wides aren't available in the October monthly at the moment, so be mindful of the fact that you may experience difficulty or have to adjust on roll out if you have to since there aren't any 205's or 235's in the October yet.
EWZ is still in a state of high anxiety with a 52-week rank in the 90's and the 30-day above 40%. The 72% probability of profit October 19th 28/38 short strangle camped out around the 20 delta is still paying over a buck (1.28), which is nice in a sub-$35 underlying.
GDX (rank 44/30-day 26): Gold and silver have had the bejesus beaten out of them, so it's no surprise that the implied is relatively high here. Given the beat-down: October 19th 19 short straddle, 1.37 credit, 18.21 delta (bullish assumption). Alternatively, October 19th 19 short put (synthetic covered call), .87 credit, 59.74 delta.
Lastly: another underlying that's gotten a smack-down -- X (earnings announced 31 days ago). The October 19th 27/33 neutral assumption short strangle is paying 1.06, but I could also see going plain Jane 30-delta short put (bullish assumption) -- the October 19th 28's paying .83; going 70 delta synthetic covered call -- the October 19th 32's paying 2.94; or going skewed short straddle -- the 40 delta October 19th 32 short straddle's paying 3.67, with the strategy selected matching the strength of your assumption ... .
Short Strangle AVGOAs of Thursday 7/12, I've entered into a short strangle 185/230 @ Sep 21 expiration for a net credit of 8.24 in hopes of managing at 50% max profit. Strike selection was a bit on the aggressive side, but saw a double fibs on support and resistance levels outlined in the red and green rectangles, and think that realized volatility is likely to contract over the following 6-15 trading days from initial execution.
AVGO - Multiple Gaps AboveWith plenty of gaps to fill, I expect a continued move higher especially with earnings coming up (8/23 AMC).
Head and Shoulders? Maybe a good shorting opportunityI'm new to this, but it seems to me that today AVG formed a H&S. If it breaks the 239, then probably will go down to ~223 on this H&S pattern. lets wait and see
AVGO Elliott wave analysisI am new to this but I do see a pattern using Elliott wave on AVGO stock. If this is correct then the stock should be heading towards 186.
Wave 2 was small so as expected wave 4 was big. Wave 3 was exactly 1.618 of wave 1. Following ABC pattern wave C should end at 186. Also wave B had lower volume then wave A.
Please do comment if you think I am wrong as I would like to learn.
Thanks
AVGO: Sort opportunityAn intraday high potential, Back Tested Sort Analysis.
We ll try to enter into the correction of the uptrend movement tracking trend oscillators as below:
Price is likely to move within the parallel channel having the potential to break it down.
CCI triple top divergence breaking down the zero level.
Triple top resistance level.
A Breakaway gap at the end of a price pattern and signaling the beginning of the reversal.
We ll try to find an entry price within the expected pull back zone 257.90 - 260.60 as previously being back tested.
DETAILS ON THE CHART
NOTE: Entry range area above the entry point, is calculated upon 80% of the recorded pullback back tested past performances
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.
AVGO: Wave 4 descending wedge appears complete. Wave 5 tgt $400Key resistance would be top of wave 3. Key support would be bottom of wave 4. Leading Diagonal started in 2009.
H&S ON AGCOLooks like a Head and Shoulder pattern forming on AGCO. If neckline is broken, and breakout is confirmed, price target will be 165.
