AVGO: Triggers for the next reversal. H & D Charts Analysis.The AVGO chart presents a notable recovery pattern after a sharp decline. On the daily chart (right side), the price experienced a V-shape recovery from the key support level at $130.25, which coincides with the completion of a gap closure. This swift recovery indicates strong buying interest around this level.
The price is currently approaching the main short-term resistance at $166.40, a level that previously acted as a support and now poses a significant barrier for further upside. The 21-day EMA (blue line) has started to turn upward, which suggests the possibility of a continuation of the current uptrend if the price can break above the $166.40 resistance level.
On the hourly chart (left side), the price is correcting after closing its previous gap. The price is now hovering around the $163.35 level, just below the resistance at $166.40, however, above the 21-hour EMA. The short-term support on this chart is established at $161.30, which aligns with recent consolidation levels. Therefore, teh short-term trend is still bullish.
In summary, the AVGO chart indicates a strong recovery with the potential for further upside if the price can successfully breach the $166.40 resistance level. We should watch for a breakout above this level for a continuation of the uptrend, while the $161.30 level + 21-hour EMA serves as critical short-term double support. Only if AVGO loses this area we would see a further decline.
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.
