We’re Buying Broadcom

Alfonso Depablos, CMT
November 10, 2023

From the Desk of Alfonso Depablos @Alfcharts

One of the most important themes this year has been the persistent outperformance from mega-cap technology.

These equities have demonstrated outstanding relative strength again in recent weeks, and we're not seeing any signs of this trend slowing down.

Today, we have an excellent vehicle for expressing our bullish thesis on these leaders.

Let's get into it.

Here's Broadcom $AVGO:

Broadcom has been in a structural uptrend for over a decade as buyers continue to push prices higher from one objective to the next.

As you can see, the stock is currently resolving higher from a continuation pattern and making new all-time highs.

We want to get long against the 423.6% Fibonacci extension, which coincides nicely with the upper bounds of the multi-month range that's been in place since the summer.

On a relative basis, AVGO is also reaching record highs versus the broader market. We don't see this relative strength ending any time soon.

Here's the play:

As long as we're above 900, we want to own AVGO with a target of 1,365 over the coming 3-6 months.

Make sure you don't miss any opportunities in these mega-cap leaders!

We have highlighted plenty of names over the past few months that continue to offer a favorable risk/reward profile. Read about them by clicking the links below:

As always, we love to hear from you, so shoot us a note and let us know what you think.

Alfonso

Filed Under