Broadcom Inc. (AVGO) is set to report its quarterly numbers on Thursday. Let's check and see what the charts of this designer, developer, manufacturer and supplier of semiconductor and infrastructure software products look like.
In this daily bar chart of AVGO, below, we can see that prices have been in a strong uptrend from the mid-March low. AVGO is above the rising 50-day moving average line and above the rising 200-day moving average line. We can see a bullish golden cross at the beginning of July. The On-Balance-Volume (OBV) line shows a strong rise from March and tells us that buyers of AVGO have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero-line since April and is pointed up towards a fresh buy signal.
In this weekly bar chart of AVGO, below, we can see a bullish picture. Prices have broken out to new all-time highs over the highs of early 2020 and 2019. Prices are above the rising 40-week moving average line. The weekly OBV line is very strong and close to making a new all-time high. The MACD oscillator is bullish.
In this Point and Figure chart of AVGO, below, we used weekly close only data. Here the chart is projecting a potential price target in the $421 area.
Bottom line strategy: Traders and investors could stay long AVGO ahead of earnings as all the charts (above) are bullish. I have no special knowledge of the earnings numbers, but it looks like a positive report is being discounted. Risk a close below $315. $400 and $421 are the next upside price targets.
