Broadcom Closing in to Support

Published on Friday, 30 July 2010 05:32 Written by Danny Miller

New York, July 30th (TradersHuddle.com) - Shares of Broadcom Corporation (NASDAQ:BRCM) are trading very close to calculated support at $35.37 with current price action closing at just $36.69 places the stock price near levels where traders will start paying attention.

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 $38.47, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Broadcom's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $38.47 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.