Is Broadcom Breaking Out?

Published on Friday, 08 June 2012 07:52 Written by TradersHuddle Wire

New York, June 8th (TradersHuddle.com) - Shares of Broadcom Corporation (NASDAQ:BRCM) closed the session at $33.87 just above calculated resistance at $32.90. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

Broadcom Corporation (NASDAQ:BRCM) provides integrated silicon solutions that enable broadband, digital data transmission of voice, data, and video content to 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.

The stock was trading in a well defined range with support at $31.21 and resistance at $32.90. Given that this range was broken, traders will be closely monitoring Broadcom's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Broadcom is still near the broken resistance level, traders will be focusing on the $32.90 level to see if the stock holds the breakout without rolling over.