Broadcom Makes a Higher Low

Semiconductor stocks have struggled along with the broader market, but a few have managed to outperform. One of them is Broadcom.

The most interesting feature on AVGO’s chart is the series of higher lows, including Monday’s dip under $475. In contrast, the Nasdaq-100 made a lower low versus August.

Next, the bounce is occurring at the 100-day simple moving average (SMA). That line has provided support since the beginning of June.

Third, stochastic recently dipped to an oversold condition.

Given the forward calendar, with earnings over the next few weeks, traders may view this an interesting moment for a stock showing signs of resuming its longer-term uptrend.

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