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Broadcom Inc. (AVGO)'s Technical Outlook is Bright After Key Golden Cross
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From a technical perspective, Broadcom Inc. (AVGO - Free Report) is looking like an interesting pick, as it just reached a key level of support. AVGO's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of AVGO have been moving higher over the past four weeks, up 35.7%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that AVGO could be poised for a breakout.
Looking at AVGO's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 14 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting AVGOon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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Broadcom Inc. (AVGO)'s Technical Outlook is Bright After Key Golden Cross
From a technical perspective, Broadcom Inc. (AVGO - Free Report) is looking like an interesting pick, as it just reached a key level of support. AVGO's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of AVGO have been moving higher over the past four weeks, up 35.7%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that AVGO could be poised for a breakout.
Looking at AVGO's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 14 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting AVGOon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.