BROADCOM INC (NASDAQ:AVGO) showing some interesting technicals. Here's why.

Our stockscreener has identified a possible breakout setup on BROADCOM INC (NASDAQ:AVGO). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:AVGO for potential opportunities.

Technical analysis of NASDAQ:AVGO

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to AVGO. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, AVGO is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that AVGO is one of the better performing stocks in the market, outperforming 94% of all stocks. On top of that, AVGO also shows a nice and consistent pattern of rising prices.
• AVGO is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 87% of 109 stocks in the same industry.
• AVGO is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so AVGO is lagging the market slightly.
• In the last month AVGO has a been trading in the 219.51 - 247.28 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of AVGO

Why is NASDAQ:AVGO a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:AVGO has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, AVGO also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price.

Trading setups like NASDAQ:AVGO

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.