AVGO – On a relative basis, Broadcom has held up well when compared to other high beta stocks. When I look at this formation of candles on the right side of the chart, I can see several patterns; 1. Flat base, blue line. 2 ascending triangle, 3. If you look hard an inverse head and shoulders and most important 4. A Minervini – VCP (volatility contraction pattern). I also like the big green volume which shows massive accumulation since it’s Jan 24th low. I’ll be looking to go long when both the overall market is up and price goes above $613.50. In this market I’ve been running no more than a 2% stop. Let’s see how it plays out. Ideas, not investing / trading advice.
Trade active
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I started a 1/2 size position @ $618.00 in AVGO this morning. Very aggressive as the stock made a bullish turn on the 5 min chart. Low was $615.78. Let's see if that holds. My stop will be just under the flat base line. If it gets back into that zone it tells me the idea / timing is not right.
Comment
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Added to position @ 627.54. Now 2/3 size. Stop moved on position to just under LOD.
Trade closed manually
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Forgot to post on April 1 I closed this position before round tripping for a small profit. Out at $632.00
i was watching this one as well and managed to watch the opportunity slip away. did you hop on board?
jaxdog
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@staffaction, I did miss the breakout. I failed to set an alert or enter a stop buy order. However, most stocks pullback after the initial breakout to test the breakout area. I'll wait for that pullback, I've already set an alert at $619 to put my eyes back on it. The chance of a pullback are rather high since the breakout was not on overly heavy volume, IMO.