Timeframe: Multi-month swing
Last week AVGO retested and rejected the weekly 10MA yet again and sold off rather quickly. I'm targeting price to eventually make it to 481 over the next month or two. For the last 3 weeks we have yet to get above the golden zone around 594-598. We have also yet to close above the weekly 10MA for 10 weeks.
How to play this?
• I'll be looking for price to cross 539.72 to signal that AVGO would like to go lower in the coming weeks. If price never crosses below that level this week then we can play the upside.
• Once the trigger hits I would be getting in to take it to 531.
Trigger (539.72) then reversal plan:
• I would look for a bearish reversal pattern on the daily around 558 and 562 to take it short.
Things to look out for:
• Be aware that price can cross 539 this week, reverse to 558, and then reverse again the following week.
• Short term I could see some upside retracement to 558-562 to retest last week's price area. There is very strong supply at this level as it is the bottom of the VWAP (from April 2022). This means a lot of folks are holding the bag and they might be anxious to get out at that level.
Short Invalidation/Bullish:
Short invalidation area is at 576.27. At that point I would take it up to 583, 594 then 598 (golden fibs).
Last week AVGO retested and rejected the weekly 10MA yet again and sold off rather quickly. I'm targeting price to eventually make it to 481 over the next month or two. For the last 3 weeks we have yet to get above the golden zone around 594-598. We have also yet to close above the weekly 10MA for 10 weeks.
How to play this?
• I'll be looking for price to cross 539.72 to signal that AVGO would like to go lower in the coming weeks. If price never crosses below that level this week then we can play the upside.
• Once the trigger hits I would be getting in to take it to 531.
Trigger (539.72) then reversal plan:
• I would look for a bearish reversal pattern on the daily around 558 and 562 to take it short.
Things to look out for:
• Be aware that price can cross 539 this week, reverse to 558, and then reverse again the following week.
• Short term I could see some upside retracement to 558-562 to retest last week's price area. There is very strong supply at this level as it is the bottom of the VWAP (from April 2022). This means a lot of folks are holding the bag and they might be anxious to get out at that level.
Short Invalidation/Bullish:
Short invalidation area is at 576.27. At that point I would take it up to 583, 594 then 598 (golden fibs).