Broadcom Looks Like It Has Room To Run

With Donald Trump seeming to reverse course on Chinese tech supplier ZTE, optical stocks have been on the move.

Among them, Broadcom Inc (NASDAQ: AVGO), which was up as much as $4 in Monday's premarket session. Though it's given back a lot of those gains since the open, the stock looks like it's primed for upside in the coming days.

The chart below comes courtesy of VantagePoint, an AI platform that uses intermarket analysis to predict future price action between 1-3 days in advance.

avgo.png

Looking at the chart, we can point to a few things:

• The blue line, a predictive moving average for the next 72 hours, crossed over the black line, a simple 10-day moving average, late last week. This is a bullish crossover.

• The Neural Index indicator, which forecasts strength or weakness in the coming 48 hours, moved from the red to the red position that same day. This serves as a confirmation of the first bullish signal.

• The headline out of Washington Monday morning caused the stock to pop even higher than the grey candle, a predicted range for Monday's session, had already predicted on Friday.

With more headlines sure to come out of the U.S.-China trade negotiations, stocks like AVGO are sure to be volatile. But until those two moving average lines cross back over, this one looks like it's got room to the upside.

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