AVGO surges $22.09 (8.24%) after posting strong earnings
Broadcom Inc. (AVGO) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
AVGO ended the week 9.88% higher at 290.29 after surging $22.09 (8.24%) today on high volume, significantly outperforming the Nasdaq 100 (0.88%) following Thursday's earnings report. This is the biggest single-day gain ever recorded for the share. Today's close at 290.29 marks the highest recorded closing price ever. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (AVGO as at Mar 15, 2019):
AVGO reported earnings of $5.55 per share after Thursday's market close. With analysts having expected an EPS of $5.17, Broadcom Inc. surpassed market expectations by 7.4%. The company's last earnings report was released on Dec. 6, 2018, when Broadcom Inc. reported earnings of $5.85 per share surpassing market expectations by 4.5%.
Friday's trading range has been $15.92 (5.56%), that's far above the last trading month's daily average range of $5.71. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AVGO.
The stock managed to close back above the 20-day moving average at 274.95 for the first time since March 5th.
Crossing above the upper Bollinger Band for the first time since December 13, 2018, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 274.95 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on December 11, 2018, AVGO gained 3.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Broadcom. Out of 25 times, AVGO closed higher 64.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 72.00% with an average market move of 3.57%.