AVGO closes higher for the 3rd day in a row
Broadcom Inc. (AVGO) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AVGO finished the week -0.18% lower at 280.91 after surging $6.46 (2.35%) today, strongly outperforming the Nasdaq 100 (1.34%). 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 Oct 11, 2019):
Friday's trading range has been $4.99 (1.79%), that's below the last trading month's daily average range of $5.91. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AVGO.
Broadcom managed to close back above the 100-day moving average at 279.83 for the first time since October 4th. When this moving average was crossed above the last time on October 4th, AVGO actually lost -1.90% on the following trading day. After spiking up to 284.08 during the day, the share found resistance at the 200-day moving average at 281.64.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Broadcom. Out of 16 times, AVGO closed higher 62.50% of the time on the next trading day after the market condition occurred.