When the Price of Broadcom Limited Ordinary Shares AVGO Talks, People Listen

June 11, 2022, 01:15 am ET, BY Jake B.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Broadcom Limited Ordinary Shares (NASDAQ: AVGO) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for AVGO can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for AVGO

• NONE. Details

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breaks higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

• Short AVGO under 568.26, target n/a, stop loss @ 569.9 Details

The technical summary data is suggesting a short of AVGO as it gets near 568.26, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 569.9. 568.26 is the first level of resistance above 541.27, and by rule, any test of resistance is a short signal. In this case, if resistance 568.26 is being tested, so a short signal would exist.

Swing Trading Plans for AVGO

• Buy AVGO slightly over 554.93, target 568.26, Stop Loss @ 553.33 Details

If 554.93 begins to break higher, the technical summary data tells us to buy AVGO just slightly over 554.93, with an upside target of 568.26. The data also tells us to set a stop loss @ 553.33 in case the stock turns against the trade. 554.93 is the first level of resistance above 541.27, and by rule, any break above resistance is a buy signal. In this case, 554.93, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short AVGO near 554.93, target n/a, Stop Loss @ 556.53. Details

The technical summary data is suggesting a short of AVGO if it tests 554.93 with a downside target of n/a. We should have a stop loss in place at 556.53 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 554.93, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for AVGO

• Buy AVGO slightly over 543.41, target 554.93, Stop Loss @ 542.14 Details

If 543.41 begins to break higher, the technical summary data tells us to buy AVGO just slightly over 543.41, with an upside target of 554.93. The data also tells us to set a stop loss @ 542.14 in case the stock turns against the trade. 543.41 is the first level of resistance above 541.27, and by rule, any break above resistance is a buy signal. In this case, 543.41, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short AVGO near 543.41, target n/a, Stop Loss @ 544.68. Details

The technical summary data is suggesting a short of AVGO if it tests 543.41 with a downside target of n/a. We should have a stop loss in place at 544.68 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 543.41, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

AVGO Ratings for June 11:

Term →	Near	Mid	Long
Rating	Strong	Weak	Strong
P1	0	0	568.26
P2	543.41	554.93	624.08
P3	561.69	589.32	681.29

Support and Resistance Plot Chart for AVGO

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