Chart of the Day: Broadcom Looks Bearish. A Time to Buy?
As the semiconductor sector makes its way through a gruesome corrective phase we notice that not even the highest quality companies are immune to the selling. Take Broadcom ($AVGO), for example. This company has shown resilience by cutting deals with the likes of Alphabet ($GOOGL), Anthropic, Meta ($META) and OpenAI and others vaulting AVGO near the top of the “most wanted chip” list. That should be significant and emboss a “buy at anytime” sign on their door. But, when the market (or sector) is in distribution even the most logical reasoning is misunderstood.
The chart of Broadcom remains steady though, and with some competitors’ earnings coming up soon there may be life in Broadcom’s stock after all. The $330 level is holding in firm. That would be the only positive we see for the chart at this time. Money flow, as seen at the bottom of the chart is weak. At the top, the candles are purple, which means bearish on the GoNoGo composite of indicators. The parabolic SAR (stop and reverse) is bearish again. Momentum is flat, it seems the current price is where buyers and sellers match up.
So, a good pickup here? We think so, as long as the $330 level holds.
We like Broadcom in the Pro Portfolio and rate it a One, or “buy at anytime.”
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At the time of publication, the Pro Portfolio was long Broadcom.
