AVGO finds buyers again around 245.68
Broadcom Inc. (AVGO) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AVGO ended Monday at 249.37 gaining $2.43 (0.98%) on low volume. Today's closing price of 249.37 marks the highest close since March 16th. Trading up to $3.41 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (AVGO as at Apr 16, 2018):
Monday's trading range was $4.21 (1.69%), that's far below last trading month's daily average range of $7.92. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being way below average.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to the key resistance level at 252.00. After having been unable to move lower than 244.90 in the prior session, the stock found buyers again around the same price level today at 245.68. After trading as low as 245.68 during the day, AVGO found support at the 200-day moving average at 249.05.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already. The share managed to break above the 200-day moving average at 249.05 today for the first time since March 9th.
Buying might speed up should prices move above the nearby swing high at 252.00 where further buy stops could get triggered.