Approaching Resistance - Broadcom

Published on Thursday, 29 July 2010 04:44 Written by Danny Miller

New York, July 29th (TradersHuddle.com) - Shares of Broadcom Corporation (NASDAQ:BRCM) are trading very close to calculated resistance at $37.79 with the current price action closing at just $37.47 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $35.37 and by the resistance level at $37.79, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Broadcom, as the stock is well above support, however, as the stock pulls back towards $35.37 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $37.79 then traders will get an opportunity to enter Broadcom stock by establishing a position as the stock moves to a higher range.