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Broadcom Inc. (AVGO) - March 8, 2024

Broadcom Inc. (AVGO) has been an all-star in the SIA S&P 100 Index Report over the last 15 months, all of which have been in the Favored zone since December of 2022. During this time, it quickly rose to the top or near the top of the rankings and has been in the top 3 spots of the Report for most of its time returning over 156%. Over the last month and quarter, AVGO has held the overall 2nd ranking behind Nvidia, another Semiconductor company.

Broadcom develops and supplies a range of semiconductor and infrastructure software solutions with its headquarters in Palo Alto, California.

Broadcom reported stronger than expected earnings after the bell yesterday with first quarter adjusted earnings of $10.99 from $10.33 a year earlier and topping estimates of $10.42. Revenue advanced 34% to $11.96 billion above estimates of $11.72. The chipmaker benefited from its VMare acquisition and artificial intelligence demand while sales in infrastructure software division surged 153% to $4.57 billion. The semiconductor solutions group posted revenue that fell short of analyst estimates. For fiscal 2024, Broadcom continues to anticipate consolidated revenue advancing 40% year on year to $50 billion. Looking at a candlestick chart, we can see two main patterns that have formed over the last year. From May to December of last year, AVGO was in a steady upward trend trading in channel between $800 and $900 for the most part. Things changed in mid-December as it began a major breakout and upward pattern. Resistance levels that were taking out as it moved upwards turned into support levels further contributing to the upwards momentum.

Looking at a point and figure chart, Broadcom Inc. (AVGO) has continued its strong move upwards to new all-time highs. The consolidation from May to November has been the only speedbump in what has been a very strong upwards move from November of 2022. Pull backs in December and January are the only other times that AVGO hasn’t been in a column of X’s. Broadcom is currently in a Double Top chart pattern. Initial support appears at the three-box reversal of $1,284 and below this at $1,140 should this level not hold. To the upside, the resistance level can be found around $1,504. Further resistance can be above this around $1,661.

With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, AVGO is exhibiting short-term strength against all asset classes.

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