AVGO in an uptrend heading into earnings

Broadcom (AVGO) is trending higher within absolute and relative price uptrends heading into earnings, which the company is scheduled to report after today’s (12/11) market close. This setup supports the case for buying dips.

On a positive earnings release, the mid-September to mid-October bullish wedge breakout projects upside into the 416–440 range based on a 100% extension and pattern count. The rising channel on the daily chart projects even further toward 460–480 into mid-January, assuming daily chart support from 370 (12/3 higher low) down to 352 (uptrend line from April) holds.

Rising 13- and 26-week moving averages from 357 to 325, along with chart support at 329.00–324.50, underpin the weekly uptrend if AVGO struggles after its earnings report.

Below is a summary of the key levels to watch heading into and after earnings for AVGO

Upside resistance / targets

• 416–440: Mid-Sept to mid-Oct bullish wedge breakout projection (100% extension / pattern count).

• 460–480: Rising daily channel projection into mid-January.

Key daily support levels

• 370: 12/3 higher low.

• 352: Uptrend line from April.

Key weekly support levels

• 357–325: Rising 13- and 26-week moving averages.

• 329.00–324.50: Additional weekly chart support underpinning the uptrend.

Chart 1: Broadcom (AVGO) (top) and relative to the S&P 500 (bottom): Weekly

Chart 2: Broadcom (AVGO): Daily