Following yesterday’s breakdown, AVGO (Avago Technologies Ltd) is currently rallying to backtest the broken uptrend line from below, thereby offering another objective entry or add-on to the short trade.
AVGO daily July 10th
AVGO was added as a Short Trade Setup on Wednesday, with the entry criterion of a break below Tuesday’s low of 126.16 (in order to help minimize getting caught in a false breakdown). The stock went on to make a solid break below Tuesday’s lows yesterday, thereby triggering an entry on the trade and has rallied in sympathy with the broad markets today while backtesting the multi-year uptrend line from below. Prices targets & suggested stops remain as originally posted.
On a related note, I have started building a watch-list of new trade ideas which I plan to narrow down by early next week, posting the most promising & timely trade ideas. Among the long-side trade ideas, GLD is getting very close to what could prove to be the next objective multi-month+ swing trade entry. Updates on gold to follow soon.