Morning Trend | Broadcom hovering at a high, is the main force about to make a move? Short-term breakout opportunities emerging?
Broadcom (AVGO.US) has shown a significant decrease in trading volume in recent days, with a breakout imminent from the high-level consolidation range, and market sentiment is starting to stir. As the rotation in the semiconductor sector accelerates, the competition for Broadcom is becoming increasingly intense, with some speculative funds already positioning themselves in advance. There have been frequent unusual movements from the main players, and although there was a quick stretch in yesterday's trading that did not lead to a new high, there are clear signs of accumulation at high levels. The most critical signal now is whether it can break through the upper edge of the previous $4090 range with increased volume. Once there is a volume surge, FOMO sentiment may explode, and the main upward wave is expected to fully initiate. However, caution is warranted regarding the overall rotation pressure in the chip sector. Recently, U.S. Treasury yields and interest rate hike expectations have fluctuated slightly, leading to a noticeable diversion of funds from some high-valuation tech stocks. If today's trading volume continues to expand and net fund inflow remains strong, the short-term bullish outlook will significantly improve; otherwise, if the volume shrinks, it may retest the $4000 area, testing short-term support. Many "old Broadcom fans" in the community are watching closely, with clear differences in opinions, and aggressive funds tend to favor short-term trading. Combining technical perspectives, the intersection of the 5-day and 20-day moving averages serves as a support focus, and short-term trading requires close monitoring. If a single day sees a surge in volume with a long bullish candle, combined with sustained unusual movements from the main players, it could present a right-side opportunity; if the trading becomes choppy, it is advisable to focus on quick in-and-out trades and avoid blindly over-leveraging on Broadcom. Overall, the main upward wave is on the verge of breaking out, but market volatility and industry news can easily create variables, so it is essential to guard against the risk of false breakouts and maintain a certain level of vigilance and flexibility
Technical Forecast·
