One group that has been struggling lately is the semiconductor sector. Led by Intel, this group has often led bull and bear moves within the tech-heavy Nasdaq and even for the SPX 500. Last week was a tough one for Intel – analysts slashed earnings estimates and Intel warned that they will miss their numbers this quarter due to a slack in demand and a stronger dollar.
While we would have expected this big semiconductor company to take down the entire group on a big earnings warning, that wasn’t the case. In fact, some names have been performing well, continuing along their uptrend. One of those names is Avago Technologies (AVGO) an analog III-V focused company that operates in four areas: wireless communications, wired infrastructure, enterprise storage, and industrial and other segments. 
Avago’s chart is fantastic, currently basing at a high level and consolidating the recent move upward. The strong days up have been accompanied by heavy volume, a sign of institutional sponsorship. We can see the breakout in December on strong volume, not unlike what we saw in February, to new all-time highs. The %R gave a nice buy signal last week, and the MACD is about to flash another one as well.
We have also seen strong flow in options as, with Monday showing some heavy volume at the April 130 strike. We added this one to our Explosive Options portfolio on Monday. Watch the video to learn more about my analysis and the Avago Technologies chart.
Avago Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through the Avago stock (NASDAQ:AVGO) and my analysis.
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