Profit-Taking Watch: AVGO Reaches $396.72 on High RSI
Broadcom Inc (AVGO) gained 4.19% to finish at $396.72 on April 16.
From a technical standpoint, the outlook appears bullish:
Moving Averages
Price trades above the 9-day EMA ($361.98) with a bullish stack. The 21-day EMA at $342.99 provides support.
Momentum
RSI at 77.3 is elevated in overbought zone, which often precedes pullbacks. MACD is bullish (14.72 vs signal 5.51).
Volatility
Price is extended above the upper Bollinger Band ($389.87), suggesting possible mean reversion.
While the trend remains bullish, elevated RSI warrants caution for new entries at current levels.
The $273.10-$389.87 range defines near-term boundaries.
