Broadcom Broke Resistance

Published on Tuesday, 27 July 2010 05:20 Written by Christian Paolinetti

New York, July 27th (TradersHuddle.com) - Shares of Broadcom Corporation (NASDAQ:BRCM) closed the trading session at $38.21 just above calculated resistance at $37.79 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 stock was trading in a well defined range with support at $35.37 and resistance at $37.79, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Broadcom's stock is still near the broken resistance level, traders will be focusing on $37.79 to see if the stock holds the breakout without rolling over.