AVGO: This is a Critical Support Level. (D&W charts)
AVGO presents an interesting setup on its daily chart, where the price recently encountered a bearish pivot point. This point is marked by a descending trend line and a notable rejection from the highs around 180. The stock has retraced to test the support area near 156.40, which aligns with a previous support zone. The bearish pivot point indicates potential weakness, and the price action will be critical to watch as it trades around this support level.
On the weekly chart, AVGO demonstrates a more comprehensive perspective with a double support area at the 21-week EMA and the 143.82 horizontal support line. This area has provided significant resistance in the past, and its confluence with the weekly EMA enhances its importance. If the price triggers the bearish pivot point seen on the daily chart, then this double support area will be our next target.
Is there a chance that AVGO will react above the $156 support? Yes, but we need to see bullish signal there, and so far, there isn’t any technical evidence suggesting that.
In summary, AVGO's price action is currently testing key support levels on both the daily and weekly charts. The reaction at these levels will be critical in assessing whether the stock can maintain its upward trajectory or if further downside is likely. The intersection of the daily bearish pivot and the weekly double support creates a focal point for us to monitor closely.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
On the weekly chart, AVGO demonstrates a more comprehensive perspective with a double support area at the 21-week EMA and the 143.82 horizontal support line. This area has provided significant resistance in the past, and its confluence with the weekly EMA enhances its importance. If the price triggers the bearish pivot point seen on the daily chart, then this double support area will be our next target.
Is there a chance that AVGO will react above the $156 support? Yes, but we need to see bullish signal there, and so far, there isn’t any technical evidence suggesting that.
In summary, AVGO's price action is currently testing key support levels on both the daily and weekly charts. The reaction at these levels will be critical in assessing whether the stock can maintain its upward trajectory or if further downside is likely. The intersection of the daily bearish pivot and the weekly double support creates a focal point for us to monitor closely.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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