Broadcom Is Close to Important Price Levels
Published on Friday, 10 August 2012 08:44 Written by TradersHuddle Wire
New York, August 10th (TradersHuddle.com) - Broadcom Corporation (NASDAQ:BRCM) closed the trading day at $34.33, near its 50 day and 200 day moving averages currently set at $32.98 and $34.01 respectively. Broadcom's price action placed the stock above these important levels, which could translate into a trading opportunity.
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.
Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.
The peaks and troughs algorithm shows calculated support at $28.60 and resistance at $34.83. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.
If traders want to establish a long position in Broadcom, it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.
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