AVGO pushes through Monday's high
Broadcom Inc. (AVGO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AVGO ended the month 8.36% higher at 315.61 after gaining $5.83 (1.88%) today, slightly underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 310.41, the stock confirmed its breakout through the previous session high after trading up to $6.64 above it intraday.
Daily Candlestick Chart (AVGO as at Jun 30, 2020):
Tuesday's trading range has been $10.30 (3.32%), that's slightly above the last trading month's daily average range of $9.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AVGO. Prices continued to consolidate within a tight trading range between 303.00 and 317.05 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, AVGO lost -1.39% on the following trading day.
Prices are trading close to the key technical resistance level at 317.44 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 331.58, upside momentum could speed up should the share be able to break out to new highs for the year. As prices are trading close to June's high at 328.11, upside momentum might accelerate should Broadcom mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Broadcom. Out of 328 times, AVGO closed higher 53.96% 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 60.67% with an average market move of 1.47%.