Thursday, December 19, 2013

Broadcom Corporation (NASDAQ: BRCM)

Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. The company operates in three segments. The Broadband Communications segment offers solutions for home, including cable, xDSL, fiber, satellite, and IP broadband networks to enable the connected home, such as set-top-boxes and media servers, residential modems and gateways, small and residential cells, and wired home networking solutions. The Mobile and Wireless segment provides low-power, high-performance, and highly integrated solutions powering the mobile and wireless ecosystem that consists of Wi-Fi and bluetooth, cellular SoCs, personal navigation and global positioning, near field communications, voice over IP, and mobile power management solutions. The Infrastructure and Networking segment offers highly integrated solutions for carriers, service providers, enterprises, small-to-medium businesses, and data centers for network infrastructure needs, including ethernet switches, physical layer devices, multicore embedded processors, knowledge-based processors, digital front ends for wireless infrastructure, switch fabric solutions, high-speed ethernet controllers, and microwave backhaul devices.
Please take a look at the 1-year chart of BRCM (Broadcom Corporation) below with my added notations:
1-year chart of BRCM (Broadcom Corporation)
BRCM appears to have been forming a base from July through November. Several times over that period of time the stock hit a key resistance level at around $28 (blue). Earlier this week BRCM finally broke up out of its range and above that important $28 level. The stock should be moving overall higher from here, assuming it holds above $28.

The Tale of the Tape: BRCM had a key level of resistance at $28 that should now act as support on any pullbacks. A long trade could be entered on a pullback to $28 with a stop placed below that level. A break back below $28 could negate the forecast for a move higher.
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