Chart of the Day: What's Next for This Bullpen 'Juggernaut'?
This name has had nothing but good news recently, but has slowed its roll.
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We have been watching Broadcom (AVGO) from the Bullpen and continue to believe it will eventually become a member of Pro Portfolio. However, much like many other tech/chip names these strong trends are very difficult to get on board.
No question this juggernaut has plenty of energy but currently the stock is fading into a range, looking to find the bottom of that area and simply cool off. The huge surge in September following earnings was tremendous. Indeed, the company at one point was valued at nearly 2 trillion dollars.
But after a surge, a tight consolidation often happens before the next move in the stock, which we believe is higher. If there is a chance to buy this stock near one of the moving averages shown we might be ready to add Broadcom.
We can see the trend is slowing down by the weakness in the ADX (pane 3) — it has come down sharply. This tells us the directional trend is neutral.
Money flow is growing, however, and that means big money managers are adding shares. We like to see that.
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
