I've been watching semiconductor stocks for sometime now and I've come to the conclusion that the sector is in a large cycle that is nearing completion. Doing a deeper dive I came across Broadcom and found that the cycle fit the wave pattern almost perfectly. Additionally, there seems to be an inverse head and shoulders on the lower timeframe. With this in mind, I think a long-term short on Broadcom at this level could lead to some considerable gains. Risky play since semiconductor stocks sometime run like wildfire but I will likely be entering a position if there is no neckline break and selling momentum from this morning continues.
How deep can be the correction. U also feel the sector is in a large cycle trend change after a good run and is nearing completion. Ignoring the Inverse Head and shoulder, where can be our entry point for selling the stocks I am holding. Pl guide. Made good gains so far
Thanks In advance
myceliium
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@sumankana, not sure at the moment - in the case of AVGO, it actually just broke out of the inverse head and shoulders. The cycle is nearing completion but investors are still very bullish on semiconductors. I wouls suggest watching SOX or SOXX and watching a break of support there ( watch for a lower low) before offloading. Also doesn't hurt to take profit on the way up...
sumankana
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@myceliium, Sir Thank you for your inputs and guidance. Will look into it too.
How deep can be the correction. U also feel the sector is in a large cycle trend change after a good run and is nearing completion. Ignoring the Inverse Head and shoulder, where can be our entry point for selling the stocks I am holding. Pl guide. Made good gains so far
Thanks In advance