Broadcom is a Siicon Valley-based company that designs, develops, and manufactures mission-critical semiconductor products used in networking devices, storage devices, data centers, broadband equipment, and wireless gear. Broadcom basically makes the chips that power most of the current popular technologies. The company’s proprietary designs as well as R&D strength gives it a strong economic moat that is expected to sustain long-term growth.
The long-term monthly chart of Broadcom indicates a consistent uptrend starting mid-2013. The uptrend saw some intermediate reversals in 2018, 2019, and 2020. The most recent downtrend began in December 2019. Over the December 2019 to March 2020, the stock price fell almost 54% from its highs. The price not only broke the bottom of the long-term trend but also s support level at 276.
However, starting April 2020, the stock has resumed its long-term uptrend. The price has gone back above the bottom trend line and the $276-support level. The likely target now is the resistance zone at 330. Stop loss can be placed somewhere below the $276-support line. Indicated in red on the chart.
Positions taken today at $310 .32 with a stop loss -18.85% below at $252. Short term profits could be taken at the top of the range at $390 giving a profit of over 26%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.
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