- AVGO stock shows a breakout of the channel in the last trading session.
- Bulls are shown their intent and continue to extend the gains.
Broadcom Inc. ( NYSE: AVGO) stock is showing a rally in price from the start of 2023 and continuing to deliver gains. Moreover, buyers continue to pull the stock and trade inside the rising parallel channel and persist in gaining. The price action shows that after the Q2 earnings report of AVGO stock, stock noted a massive inclination with an increase in trading volume, and stock registered enormous buying.
The earning report of Q2 2023 noted above the estimates with total revenue growth of 7.77% at 8.73 Billion on a TTM basis ( YoY) and net income growth of 34.40% at 3.48 Billion (YoY). Furthermore, AVGO stock is trading above the significant moving averages and showing bullishness on the charts.
Broadcom Inc. is a technology company. The Company designs, develops, and supplies a range of semiconductor and infrastructure software solutions. It operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes product lines and Internet protocol (IP) licensing.
At press time, AVGO stock was traded at $804.62 with an increase of 0.05% showing buying perspectives. Moreover, the average trading volume in the intraday session was 1.925 Million, dropping 2.25%. Moreover, AVGO stock on the charts pauses and is willing to retest the 20-day EMA mark.
Will AVGO stock retest the 20 day EMA?
On the daily charts, AVGO stock has outperformed in the past months and continued to give positive outlooks.
The ongoing trend of AVGO stock shows that stock has rejected from the supply mark of $900 and seen a drop from there but now trading above the round level of $800 and the 20-day EMA. If stock sustains above $800, it will give rise to strength, and stock will soon retest $850 and follow marks of $900.
On the other hand, if the stock continues to fall and slips below the 20-day EMA, fresh weakness in the stock may be seen, and it will head toward the primary support of $700 near the 50-day EMA.
Short Term Charts Shows Selling in stock
On the 4-hour chart, AVGO stock has shown a retracement from the hurdle of $900, and a rejection candle with a long wick was noted, which indicates that sellers maintained the grip on the top and threw back the buyers, which resulted in the rejection of price.
Afterward, the stock faced pressure, did not show follow-on buying, continued to lose momentum, and faced a decline from there.
The RSI showed a fall from the overbought zone and noted near 56 near the neutral levels but showed a negative divergence.
Furthermore, the MACD indicator also showed a bearish crossover, and red bars are noted on the histogram showing that the stock’s selling pressure persisted.
Conclusion:
AVGO stock has shown volatile moves in the past trading sessions and seeks to rescue the gains.
Technical levels:
Major support: $760
Major resistance: $890
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.