AVGO update - $855 a key levelNASDAQ:AVGO has consolidated and built a strong volume profile since its rapid climb to the $800's in May. Recall in May that it gapped up with a breakaway gap and completed a measured movement. It recently broke out of a symmetrical triangle and completed a measured movement from that pattern. Price action returns the the cradle of the symmetrical triangle ~60% of the time.
I'd like to see price action remain above the cradle of the pattern and above the VWAP from the low of the pattern. It will be concerning if this level doesn't hold as we have an airgap in the volume profile, potential to fill the May gap, and potential to retest the golden ratio in the $695-705 range.
My game plan:
- Take profit if we fall to $845, which is 50% of a 20 period ATR below the cradle of the triangle
- Four accumulation targets: $790, $750, $730, $705 which represent the 0.382 and bottom of the patter, the top and bottom of the gap, and the golden ratio
