Trade of the Day
Broadcom Inc. (NASDAQ: AVGO)
(Current Price: US$621.57) – TECHNICAL SELL
Sell price: US$621.57 Stop loss: US$644.00 Take profit: US$546.00
The price broke down of a bearish rising wedge pattern on 12th April with the formation of a dark cloud cover bearish reversal candlestick. The price has displayed bearish signals after the formation of a double top at the US$648 level, with both Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators showing bearish divergence where lower highs were made.
The price could head to the support level at US$546, a previous key resistance in August last year now turned support in January this year.
Expected timeline of the trade is 8-12 weeks from the date of report issuance.
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