Close to the 200 Day Moving Average: Broadcom

Published on Thursday, 30 August 2012 08:36 Written by TradersHuddle Wire

New York, August 30th (TradersHuddle.com) -Broadcom Corporation (NASDAQ:BRCM) closed the trading session at $35.66 near its 200 day moving average set at $34.00. Broadcom's price action is just above this key support level, grabbing traders' attention for a possible 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.

The latest price action range, defined by a peaks and troughs algorithm, places calculated support at $28.60 and resistance at $36.21. These levels will provide insight for the stock's latest price dynamics.

Traders wanting to establish a position on Broadcom will look for evidence of buying near the 200 day moving average, before opening the position as close as possible to this key technical level. Also, they need to consider the latest range defined by the calculated support and resistance levels for insights on other key levels that might have an effect on future price movements.