Breakout from Rounding Bottom
Breakout from rounding bottom
on Major Support (MS). BRCM sold off
aggressively from last month's new 52-week high.
There are signs that it is bottoming on the
daily chart, including no down side follow
through to bearish bars. It is finding MS from
the May breakout area. After a bullish gap up,
yesterday's real body closed in the upper part
of the prior bar's bearish body, showing that
the bulls are getting more aggressive.
Additionally, although not shown, it is a Buy
Setup on the weekly chart; the hourly chart is
basing bullish; and the semiconductor index
showed relative strength and may bounce more.
chart courtesy of
Tip: A breakout from a
rounding base on MS often has bullish follow
buy BRCM over previous day high ($21.08), with a
protective stop under $20.68, a 30-min. pivot.
$1.00 to $2.00 move.
BRCM met the high $2.0 target
and next day it gapped up trading an additional