Is Broadcom Breaking Out?
Published on Friday, 30 November 2012 08:28 Written by TradersHuddle Wire
New York, November 30th (TradersHuddle.com) - Shares of Broadcom Corporation (NASDAQ:BRCM) closed the session at $32.44 just above calculated resistance at $32.31. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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 $30.35 and resistance at $32.31. 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 $32.31 level to see if the stock holds the breakout without rolling over.
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