A big earnings report last week from Broadcom (AVGO). The company reported EPS of $1.42 on revenues of $14.1 billion. That beat on the bottom line though inline with revenue expectations. The company raised its dividend by 11% while commenting that its AI revenues for the year have more than tripled. The company is developing custom AI chips with three separate large cloud customers.
That has since been interpreted as AVGO chewing into NVIDIA’s (NVDA) market. It certainly put AVGO shares in motion. If the 24% move higher on Friday following earnings wasn’t enough, Monday’s encore added another 11.2%, taking the stock to $250 into the bell. AVGO shares closed last Thursday at $180.66.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding Braodcom’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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