2023 has turned out to be one of the best years for Broadcom price. Rising from the low of $550.79 and forming a higher lows, Broadcom has been in an uptrend since the start of 2023.
Recently, Avgo price entered into the consolidation zone as it was not able to close above $644. The consolidation zone ranged between $610.55 and $644.
The price stayed in the consolidation zone from the start of march to mid of may. Avgo price gained enough bullish momentum to shatter the resistance level of $644. The stock price then faced rejection from $700 which pushed the price down to $678.
Bulls were not ready for any further downfall and Avgo price regained bullish momentum to rise above $700. Avgo price created all-time at $814.98 on 26 May.
Apple announced a multibillion-dollar deal with Broadcom to develop 5G radio frequency components in the United States. The deal is part of Apple’s 2021 commitment to invest $430 Billion in the United States economy. Apple would now be using chips made in the United States. Broadcom will be providing film bulk acoustic resonator (FBAR) chips to Apple. One-fifth of Broadcom’s revenue came from Apple over the last two fiscal years.
Earning Report Release of Broadcom INC.
Consensus has estimated revenue of $8.703 Billion for quarter 2 of 2023. The revenue generated in the first quarter was $8.91 Billion dollar with a net income of $3.77 Billion. The earnings per share (EPS) estimates $10.12 for the second quarter.
From 2021, Broadcom has always outperformed the consensus estimates of revenue as well as EPS. The chipmaker company’s financial health is very strong and stable. There is a higher probability that Broadcom will beat the estimates for Quarter 2.
Will Avgo Price Lose Bullish Momentum After Release of Earning Report?
Avgo price is in strong bullish momentum and is trading above the 20,50,100 and 200-Day EMAs. The Chaikin money flow score is 0.40 indicating strength in the market. RSI trades at 86.57 inhabiting the overbought zone. There are no signs of even a short term pullback in the price. Even the lower time frames are highly bullish.
Investors have a positive outlook for the upcoming earning report. Broadcom’s deal with Apple ignited the bullish momentum in the price and the positive outlook of the earnings report is fueling it.
ສະຫຼຸບ
The market structure and price action for Broadcom is highly bullish but traders should be cautious as earnings report can cause a correction in the price. Even though the earnings report might come positive, sometimes price can move in the downward direction before moving further upwards.
ລະດັບເຕັກນິກ
ສະຫນັບສະຫນູນທີ່ສໍາຄັນ: $700 ແລະ $678
Major resistance: $850 and $900
ຂໍ້ສັງເກດ
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Source: https://www.thecoinrepublic.com/2023/05/30/broadcom-inc-avgo-stock-price-rises-after-apple-deal/