Broadcom (AVGO) was given a thumbs up from Jim Cramer during his Mad Money program Wednesday evening. In his "No-Huddle Offense" segment of the program, Cramer said with China coming back online there are lots of opportunities being created and he was bullish on Broadcom.
Let's review the charts of this manufacturer and supplier of semiconductor and infrastructure software products.
In this daily bar chart of AVGO, below, we can see how prices have quickly retraced more than half of the previous decline. Prices are testing the underside of the declining 50-day moving average line.
The daily On-Balance-Volume (OBV) line has moved up smartly from its March low and is not all that far away from making a new 2020 high. Trading volume was heavy into the March low making it easy for an aggressive buyer to acquire a big long position without attracting much attention.
The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside last month for a cover shorts buy signal. The MACD has improved so much it is poised to cross the zero line for an outright go long signal. Impressive.