Semiconductor stocks are the bellwether for the technology industry and overall growth. When these stocks are moving higher, we usually see other big tech names follow their lead, such as Apple, Microsoft, and IBM. Leading the latest charge is Avago Technologies, an analog III based producer of chip technology for wireless and other segments. The stock is broadening its horizons after the recent announcement that they are buying chip manufacturer Broadcom.
Avago Technologies Stock Chart (Nasdaq: AVGO)
Avago’s chart is very telling, as we see it once again attacking and trying to push past the $130 area. A higher low on the chart makes this third attempt at breaking through resistance much more likely. There is a gap to fill around $135, and that should happen soon.
Relative strength has improved smartly from the late summer swoon, and while the stock is overbought, that is not a reason to sell. In fact, we have seen in the past that this stock can continue to rise with an overbought condition. Certainly there is room for more upside, as the all-time high just less than 7% away from the current price.
Avago Technologies Video Chart Analysis
Take a deeper dive into the chart action (Nasdaq: AVGO) and learn how to read the technicals and analysis as Bob Lang marks up our chart of the week.
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About Avago Technologies
Avago Technologies Limited designs, develops, and supplies semiconductor devices with a focus on analog III-V based products. The company operates through four segments: Wireless Communications, Wired Infrastructure, Enterprise Storage, and Industrial & Other segments. Its product portfolio comprises RF power amplifiers, RF filters, RF front end modules, ambient light sensors, proximity sensors, low noise amplifiers, multimarket-wave mixers, diodes, fiber optic transceivers, serializer/deserializer ASICs, and optical laser and receiver components. The companys products also include read channel based system-on-chips, preamplifiers, serial attached SCSI and redundant array of independent disks controllers and adapters, custom flash controllers, industrial fiber optics, optocouplers, motion control encoders and subsystems, and LEDs. Its products are used in smartphones, hard disk drives, computer servers, consumer appliances.
