Broadcom stock: buy or sell
Jul 29th, 2021
Broadcom stock brief
- Broadcom stock slightly moved 0.48% to close at $477.65 on the stock market on Wednesday.
- Broadcom shares are just 3.31% below all-time highs
- Price is drawing a scaled uptrend since last March with higher tops and higher bottoms. Up to date, price made a 15.72% profit since the beginning of this rally
- Broadcom Inc. designs, develops, and supplies semiconductor infrastructure software solutions.
Should I buy Broadcom stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AVGO stock a buy?
Currently, Broadcom stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it rises fast. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Broadcom can break to ATH any time soon, as it only needs to go up a 3.43%. The buy point is at $494.02 if you want to trade with this strategy. The stop loss would be placed at $444.62
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$494.02||$444.62||10.00%|
Should I sell Broadcom stock?
"To sell or not to sell", if you are holding Broadcom stock?. Trading strategies allow us to avoid rash decisions based on our emotions or the noise surrounding the market. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for selling short $AVGO stock
As a rule of thumb, you should never hold an open trade that yields greater losses than those expected by the time of purchase. When to sell shares always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Broadcom stock?
Currently, Broadcom stock doesn't match any of our preferred sell setups, so if you hold Broadcom shares and your operation is in profit probably is not time to sell now
We don't have any rating published in the previous 30 days for Broadcom
Broadcom stock analysis
Broadcom shares started an uptrend last March, and gained an amazing 15.72%. The chart shows higher peaks and higher lows, and along the way provided some entry points for those who wanted to enter. Latest pullback was last Friday, when price bounced at $455.71. Like in all uptrends, price needs to rest and currently price is moving in a range between $494.02 and $455.71
$AVGO near to Highs
Close to ATH
Supports and resistances
The current resistance levels are:
The current support levels are:
The price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks
Relative strength index
When the moves for so long below 70 and above 30, without indication of overbought and oversold, the indicator becomes of little use, and we are currently in one of these situations.
Broadcom stock price history
Broadcom IPO was on Aug 6th, 2009 priced at $12.72 per share1. Since then, AVGO stock has risen by 3,655.11%, with an average of 332.28% per year. If you had invested $1,000USD in Broadcom stock at that time, it would worth $37,551.10 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Broadcom stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
The following table shows the price target released by analysts for the last 30 days. If you are a small trader you should not buy or sell based on these price targets.
In the previous 30 days we couldn't find any price target published for Broadcom stock.
Earnings and financials
Broadcom ($AVGO) had the quarterly shareholders event and presented the report in early June. Wall St. was successful in their forecast of Broadcom's which published $6.62 per share. Accordingly, reported revenues of $6.6 billion were in line with consensus predictions.Same quarter one year ago, reported EPS was $5.14, so recently reported EPS means a gain of 28.79%. Sales barely moved on an annualized basis in the , from $0.00 to $66.1B last quarter.
Broadcom ($AVGO) is hosting the Q3 earnings call next September. Market analysts analysts forecast of $6.88, that is a 3.93% higher than previous quarter.
Please read:The opinions written in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the specific circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for learning reasons only
|Wednesday, July 28th, 2021|
|Day range||$474.32 - $479.08|
|Average true range||$12.52|
|50d mov avg||$467.16|
|100d mov avg||$462.30|
|200d mov avg||$438.36|
|Earnings date||September 1st, 2021|