Was asked to take a look at AVGO. In an interest to continue learning and stretching myself I thought I would take it on. Here’s where I landed.
The stock spiked hard starting 25 October and gained nearly 17% in 23 days vs the trend it was on with nearly 14% over 146 days. This looks like an anomaly and maybe some outside factors played a role in this spike. I would expect it to settle back in to it’s health trend soon. It’s certainly on the rise, but working on the data alone I wouldn’t expect it to continue at this new aggressive rate. It’s more likely it will establish a new resistance level, but my guess is it will settle back into it’s current trend and coming back to this $560 range in a more healthy way in around Feb/Mar of 2022. If a new resistance level is established we could see it hitting $600+ in Feb/Mar 2022 instead.
I took a not so scientific look at the resistance levels. It appears the stock skips along the resistance line for an average of 60 days (looked at this pre-COVID and also what it’s doing now - it can be longer or shorter). At the end of each cycle a new resistance level is created. This stock was about establish a new resistance level when it broke out.
Semiconductors sector is an interesting industry. If Broadcom keeps delivering and the demand keeps increase; I expect it to continue to rise. Certainly not financial advise and I’m still learning here. Again, if I missed anything or if there are any tools, indicators or strategies that I could be applying to get better results I would love to hear them.
@Trynreadme Sir, after almost 46 days from your last post, AVGO has given a 20% gain. Really a good run. Any inputs from here on will greatly be appreciated
sumankana
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Trynreadme, First Accept my gratitude to have taken this effort. Glad to see a detailed time study. Very interesting to see the time study, I gather it is time for cool off. Hope my understanding is right.
My Study also says the resistance is at around 570 levels but bigger target extents upto 640. My limited understanding says so. Again It depends upon on the extent of correction after the high being made or has it already made remains a question which will prove in a couple of days.
Thank you very much. Add updates when it warrants.
Sir, after almost 46 days from your last post, AVGO has given a 20% gain. Really a good run. Any inputs from here on will greatly be appreciated