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Shares of AVGO(Broadcom Inc) have been trading sideways in a narrowing range since mid Feb.  This healthy consolidation followed a 220% gain off the March 2020 lows.  As the week comes to an end the stock is poised for an upside breakout.  

Solid footing is in place.  The 50D has been very supportive since the start of June.  Last earnings report, a beat, was released on June 3rd:  Broadcom Rides Soaring Chip Demand to Q2 Results Beat By

Despite being within striking distance of new highs AVGO is far from overbought in both the daily and weekly MACD indicators. 

On the downside, a close back below $455.00 would violate last week’s low sending a clear warning sign that more sideways action is ahead.

No Position.