Broadcom (AVGO) has been trading sideways since June in a tighter and tighter range. The distance traveled on the chart has narrowed with prices getting closer and closer to some sort of apex. Despite the up and down swings the level of trading volume has been subdued and suggests we are looking at a large triangle-like pattern.
Could be, but let's look at a few more charts and some indicators before coming to a conclusion.
In this daily bar chart of AVGO, below, we can see a pattern of higher lows from July and a pattern of lower highs from June. Prices are not likely to stay in this condition much longer.
The 50-day moving average line and the 200-day moving average line are very close together with both showing a bearish slope for now.
The daily On-Balance-Volume (OBV) line shows a rising trend from the middle of July suggesting to me that through this sideways pattern buyers of AVGO have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator in the lower panel shows higher lows from July and is just above the zero line now.
In this weekly bar chart of AVGO, below, we have a mixed picture in my opinion. Prices have been trading around the downward sloping 40-week moving average line.
The weekly OBV line needs to see a cardiologist with all its up and down movements.
The weekly MACD oscillator has been moving up towards the zero line since September - maybe it will cross in the weeks ahead.
In this Point and Figure chart of AVGO, below, we hopefully have filtered out some of the noise of the daily bar chart. This chart is projecting a downside price target of $193 but a rally to $248 will be positive.
Bottom line strategy: To be honest, the charts and indicators on AVGO are confusing at this point in time. I tend to favor the upside more than the downside. Aggressive traders could probe the long side on strength above $248 risking below $225.