Chart of the Week: Broadcom
Hey good morning everyone. Time for our chart of the week for October 28. We’re gonna look at Broadcom; symbol AVGO here. Not the best looking chart here right now, but I think the best is yet to come for Broadcom here.
You can see clearly the stock is mired in a deep downtrend here – lower highs and lower lows. And I think that what’s important here is to take a look at these last few days. The last few days show what’s called a morningstar pattern, which is a three candlebar pattern where you get a down day, you get a doji, and you get an up day the following day. I always like to see a followthrough day, so that would be October 27. We’ll see if that happens.
We did see higher volume on Monday than we did on Friday. We saw some heavy selling last Thursday as the stock gapped down. It looks like it was probably exhaustive selling here.
MACD is clearly on a sell signal. Relative strength is still oversold here. And again, nothing really too bullish right here on this chart, but we know the company is in AI and makes a lot of chips and makes a lot of deals with some hyper-scalers. I think that this is the time to start taking a look at Broadcom.
Where are we looking for the stock to go? Probably out to at least the $380 mark, roughly. Being at $329 right now, that would be a nice 50 points to the upside, about 14 1/2%.
There’s a gap to be filled over here, there’s a gap to be filled over here as well, but that’s probably some time in 2027. So, they do have earnings coming out in the early part of December, and we have some other companies that are going to be coming out with earnings over the next couple of weeks. And of course Nvidia later on in November, which could drive shares of Broadcom higher.
So take a look at Broadcom here. I think it’s pretty washed out. And at least for the very minimum, at least back up to $380. It’s had some good news, it’s had some positive news, so it got an upgrade on the 27th as well, so we’ll see how things go.
Check out Broadcom; AVGO. Thanks so much for watching everyone, and I’ll see you guys next time.
