AVGO: This is a CRITICAL support level! (D&W analysis)
Looking at the daily chart of AVGO, we observe a hammer candlestick pattern forming after an exhaustion gap, signaling a potential reversal. This hammer, typically seen at the end of a downtrend, indicates that the sellers may be exhausted, and a reversal could be on the horizon. Additionally, the gap left behind earlier this month has been almost filled, which often acts as a catalyst for a shift in market sentiment. The key resistance level is the $150.11 zone, which, if broken, could suggest further upside towards $172.42.
On the weekly chart, AVGO remains supported by a long-term ascending trendline that has held through recent pullbacks. The price also shows a bounce from the 21-week EMA. If the hammer on the daily chart leads to sustained upward momentum, it could trigger a continuation of the broader uptrend seen on the weekly timeframe. However, if the price fails to maintain support around the trendline, a deeper correction could ensue, with the next major support level around $130.25.
In summary, the daily chart suggests a potential short-term reversal after an exhaustion gap and hammer pattern, while the weekly chart maintains a bullish structure as long as the trendline and 21-week EMA continue to hold.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
On the weekly chart, AVGO remains supported by a long-term ascending trendline that has held through recent pullbacks. The price also shows a bounce from the 21-week EMA. If the hammer on the daily chart leads to sustained upward momentum, it could trigger a continuation of the broader uptrend seen on the weekly timeframe. However, if the price fails to maintain support around the trendline, a deeper correction could ensue, with the next major support level around $130.25.
In summary, the daily chart suggests a potential short-term reversal after an exhaustion gap and hammer pattern, while the weekly chart maintains a bullish structure as long as the trendline and 21-week EMA continue to hold.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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