Don't Ignore This Chart!

Broadcom Consolidates within Uptrend $AVGO


This is my third straight DITC posting with a semiconductor stock. The first featured Texas Instruments forming a cup-with-handle pattern and the second featured Intel with a surge towards long-term resistance. Today's chart focuses on Broadcom, which is actually lagging the S&P 500 SPDR over the last few weeks. Note that SPY hit a new high this week and AVGO remains within a consolidation. The long-term trend is clearly up and a consolidation within an uptrend is typically a bullish continuation pattern. This means an upside breakout at 255 would signal a continuation of the bigger uptrend and open the door to new highs. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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