Shares of Broadcom (AVGO) popped after the company's quarterly results Thursday night. Company guidance also surpassed expectations. In my September 1 review of Broadcom, I had a bearish outlook and the shares declined to a low in October.
Let's check the charts again as the shares are up sharply in early Friday trading.
In this daily bar chart of AVGO, below, we can see the price action as of Thursday's close. The rally from mid-October has broken the downtrend line (not drawn) from the December 2021 high. The shares are trading above the rising 50-day moving average line and Friday we should see AVGO above the 200-day line.
The daily On-Balance-Volume (OBV) line shows improvement from the middle of October and trading volume has been heavy since early September. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but has crossed to a take profit sell signal.