Is Broadcom Seriously Oversold?Broadcom steadily advanced since the beginning of the fourth quarter, and now it’s had a dramatic pullback as sellers shred the Nasdaq.
The first pattern on today’s chart is the level around $544. It was a low on November 26 and again on December 2. Traders may look for it to provide support again.
Next, AVGO is oversold by at least two measures. Stochastics dipped even lower than their bleakest readings of 2020. Our Distance from MA script also shows price under the 50-day simple moving average (SMA) by 9 percent. It's the furthest since April 2020.
Speaking of SMAs, the chip maker is back below its 100-day SMA. The last time it touched that level marked the beginning of a sharp rally.
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