Broadcom Bearish Signs

Published on Thursday, 29 July 2010 18:03 Written by TradersHuddle Staff

New York, July 29th (TradersHuddle.com) - Shares of Broadcom Corporation (NASDAQ:BRCM) ended the trading session lower by $0.78 or -2.08% from its previous close. Broadcom's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Broadcom Corporation (NASDAQ:BRCM) provides integrated silicon solutions that enable broadband digital data transmission of voice, data, and video content to the home and within the business enterprise. The Company designs, develops, and supplies integrated circuits for cable set-top boxes, cable modems, high-speed networking, direct satellite and digital broadcast, and digital subscriber line.

Broadcom's current stock range is defined by calculated support defined at $35.37 and by the resistance level at $38.47, which should be used by traders planning their trades.

Traders wanting to establish a position in Broadcom stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Broadcom shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: