Broadcom surged in April, and some traders may see more upside in the chip giant.
The first pattern on today’s chart is the December peaks around $410. The potential importance of this zone was reinforced by the weekly close of $406.54 on April 17. AVGO initially paused below this range but has spent three weeks mostly above it. Has old resistance become new support?
Second, prices tested and held the rising 21-day exponential moving average (EMA) yesterday.
Next, the 8-day EMA has remained above the 21-day EMA. The 50-day simple moving average (SMA) also had a “golden cross” above the 200-day SMA last month. Those signals could reflect bullishness in the short and long terms.
Finally, AVGO is an active underlier in the options market. (Its average daily volume of 187,000 contracts ranks 20th in the S&P 500, according to TradeStation data.) That could help traders take positions with calls and puts.
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