Broadcom Surges, Opening the Door to Further Gains

The shares have climbed $60 in the month of May so far.

In my April 13 review of Broadcom (AVGO)  I wrote that "AVGO looks like it will rebound from the rising 50-day moving average line, but weakness in some of the indicators since the middle of March suggest we proceed with caution. Traders who are long AVGO should consider raising sell stops to $605 to protect gains."

The shares dipped to close to $600 in late April and early May so some traders may have been stopped out if they did raise stops to $605.

Let's review the charts again.

In this updated daily bar chart of AVGO, below, I can see that the shares have climbed $60 in the month of May so far. AVGO is trading back above the rising 50-day moving average line and above the rising 200-day line.

The trading volume does not show an increase but the On-Balance-Volume (OBV) line has turned up to a new high. The Moving Average Convergence Divergence (MACD) oscillator touched the zero line and has turned upwards again for a fresh outright buy signal.

 

In the weekly Japanese candlestick chart of AVGO, below, I can see a large white candle (bullish) marking the new high for the current move up. The shares are within "striking distance" of breaking their 2021 highs. AVGO trades above the rising 40-week moving average line.

 

The weekly OBV line shows a rise going back three years -- impressive. The MACD oscillator is bullish.

 

 

In this daily Point and Figure chart of AVGO, below, I can see a price target in the $789 area.

 

 

In this weekly Point and Figure chart of AVGO, below, I see a $759 price target -- lower than the daily chart above.

 

 

 

Bottom-line strategy: Traders who may still be long should hold. Dips below $660 could be used to rebuy AVGO or add to longs. The round number of $700 is the next price target with $759 after that.

 

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