Focusing the Lens on Broadcom Ltd (AVGO) Shares: Technical Update

Broadcom Ltd (AVGO)’s closing price of $260.82 has closed above it’s Parabolic SAR reading, indicating a potential trend reversal. Parabolic SAR (or …

Broadcom Ltd (AVGO)’s closing price of $260.82 has closed above it’s Parabolic SAR reading, indicating a potential trend reversal.

Parabolic SAR (or PSAR) is a simple, compact indicator that can provide some useful information when taking into account additional trends and factors. It is not typically recommended, however to use it as a stand-alone to generate trading signals. Since it is time and price based it is not adept at measuring the actual strength of a trend, merely its direction and duration. It is a good idea to use it in conjunction with additional indicators that can help determine the trend’s strength.

Investors may be diving into the latest company earnings reports trying to scope out some quality stocks to add to the portfolio. Nobody knows for sure which way overall market momentum will sway as we near the close of the calendar year. Investors may be getting ready to do a portfolio review to see which stocks are worthy to hold, and which ones have underperformed a may need to be unloaded. Regularly monitoring stock investments may keep the investor ready for any big market changes that may occur.

After a recent look, Broadcom Ltd (AVGO) has a 50-day Moving Average of 241.19, the 200-day Moving Average is 235.99, and the 7-day is noted at 253.61. A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Traders may be relying in part on technical stock analysis. Broadcom Ltd (AVGO) currently has a 14-day Commodity Channel Index (CCI) of 113.20. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Broadcom Ltd (AVGO) is 11.99. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 61.31, the 7-day is at 68.72, and the 3-day is spotted at 81.38 for Broadcom Ltd (AVGO).

Active traders are often looking for the next great move to secure profits in the stock market. Traders might be tracking stocks that are primed for a breakout. When a stock suddenly breaks to the upside, it has the potential to bring the optimistic crowd along with it. The breakout may bring in traders who missed out on the beginning of a run trying to capitalize on the back end. The professional trader is typically one who is able to stand out from the crowd. Being able to separate fantasy from reality can mean big profits for the dedicated trader. Impulse buying or selling on good or bad news is common in the stock market. Being able to come to a reasonable conclusion about why stock prices are headed one way and not the other can be a tough proposition. Paying attention to all the headlines may lead some traders down the path of no return if trades are being made strictly on daily news or even perception or that news. Discerning between what is actually driving a stock and what is perceived to be driving a stock may end up being a large factor between future gains and losses in the equity market.

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Bitcoin Cash [BCH] Technical Analysis: BCH fails to recover as EOS looks to pounce

Bitcoin Cash [BCH], despite maintaining its fourth spot on the coin ladder, has seen the gap with EOS [EOS] decrease to under $50 million. Bitcoin …

Source: Trading View

The one-day trend line is dominated by one significant downtrend immediately post the Bitcoin Cash hardfork on November 15, 2018, which extended from $608.83 to $163.6. Prior to the hardfork, the coin enjoyed an uptrend extending from $448.95 to $607.48.

Bitcoin Cash’s two prominent resistance levels in this particular chart have a 70 percent difference in their price, with a major resistance level from September to just before the hardfork at $654.61 and the recent resistance level of $196.32. During the former period, the support level was $409.5 and the immediate support level is $74.86.

The MACD line shows that the coin was trying to break out of the bearish market and came close during the beginning of the year, currently, it still remains with the bears.

The coin’s Relative Strength Index shows that the demand for the coin has been on a decline since mid-December. At present, the RSI is pegged at 39.56, nearing the oversold level.

The Parabolic SAR indicates that Bitcoin Cash is still stuck in a bearish phase as the dotted lines are aligned above the BCH trend line.

Conclusion:

The coin has failed to get any respite since the hardfork and has been embroiled in a bearish spree for the past two months. The indicators in the one-hour chart are pointing to a breakout from the bearish market, provided the market recovers. However, the overwhelming trend, as seen in the one-day chart, continues to be bearish.


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Ethereum [ETH/USD] Technical Analysis: Coin continues to linger in bear’s realm

According to CoinMarketCap, at press time, Ethereum was trading at $122.40, with a market cap of $12.78 billion. The trading volume for the …

Ethereum one-day chart | Source: Trading View

The one-day chart demonstrates a steep downtrend from $499.01 to $155.91. The uptrend for the coin is laid out from $83.74 to $115.61. The immediate resistance for the coin is at $128.46 and the strong resistance is at $219.33. The immediate support is placed at $114.43 for the coin and the strong support is at $82.79.

Klinger Oscillator is forecasting a longer bearish market as the reading line is placed below the signal line after a crossover.

MACD is also forecasting a bearish wave as the moving average line has found shelter below the signal line, soon after a crossover.

RSI is showing that the buying pressure and the selling pressure for the coin are currently evened out in the market.

Conclusion

The coin is engulfed in the bear’s realm with barely any escape points. Additionally, the bear is seen ruling the market with Klinger Oscillator, and MACD from the one-day chart and Parabolic SAR, and Chaikin Money Flow as its advisors.


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XRP/USD Technical Analysis: Bear chases down the coin

The cryptocurrency market has been on a roller coaster ride for the past few days and has not seen a long-lasting trend. The second largest …

Source: Trading view

According to the one day chart of the coin, an uptrend is observed from $0.3680 to $0.5736, but the coin plunged after the rise. The coin fell from $0.5551 to $0.5736 marking resistance at $0.3680. The coin was offered immediate support at $0.3216, where another support was observed at $0.2906.

Parabolic SAR indicates a bearish market as the markers have aligned themselves above the candlesticks.

MACD line is under the signal line, pointing towards a bearish market.

Relative Strength Index indicates that the buying and the selling pressures are evening each other out.

Conclusion

As per the indicators Bollinger Bands, Awesome Oscillator, Parabolic SAR, and MACD, the market prediction is a bearish.


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Ethereum [ETH/USD] Technical Analysis: Coin takes refuge in bear’s kingdom

According to CoinMarketCap, at press time, Ethereum was trading at $122.31 with a market cap of $12.75 billion. The trading volume for the …

Ethereum one-day price chart | Source: Trading View

The downtrend for the coin is demonstrated from $499.01 to $155.91. The chart pictures an uptrend from $83.74 to $115.61 for the cryptocurrency. The immediate resistance is seen at $156.06 and the strong resistance is at $218.96. On the other hand, the immediate support for the coin has found its ground at $115.45 and the strong support is at $82.88.

MACD is on the bear’s side of the market as the moving average line is below the signal line after a crossover.

Aroonindicator is currently showing a strong bearish presence as the down line is dominating over the up line.

RSI is showing that the buying pressure and the selling pressure for the cryptocurrency are currently evened out in the market.

Conclusion:

The market is forecasting a bearish weather for the coin as a majority of the coins are rooting for its return. This includes Parabolic SAR and CMF from the one-hour chart and MACD and Aroon Indicator from the one-day chart.


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