Description
⋅ AVGO is asking to be chased. On the daily chart, the price is now $50 below the ATH of
the top of of the month. RSI on the lower TF green line has pulled back to 72 from 85.
The longer TF black line is admittedly in overbought territory. The longterm growth
expectations of the AI stock defy ordinary technical analysis, AVGO is 3-4% below the ATH.
I see this as an opportunity to diversify in AI stocks by getting a small position in BroadCom
to supplement NVDA, MU and INTC. I am looking at TXN as it has a lower price tag and is
about 10% below ATH. ( The growth prospects need a look to see if they are there.)
I expect AVGO to compete well in the space and can see that it is making agreements with
some other companies well situated in AI .
Comment
⋅ AVGO is sideways in a high tight bull flag consolidation. expecting more holding
full position over the weekend before a short week. Trade active
⋅ Price advanced and so was the stop loss- now a risk-free trade- holding it all might
add a piece on Monday at the opening bell. Trade active
⋅ Sideways without much volatility. Holding and watching.