For today's chart we've chosen to take a look at
Broadcom Corp. (Nasdaq:
BRCM) because it is trading within the confined range of a
horizontal channel. As you can see from the chart below, the $37 level has acted as a strong area of
resistance in the past and it will be interesting to see if this will be the case again. We've also added the
Parabolic SAR indicator, which has recently triggered a buy signal. Notice how the previous buy sign (reversal of the dots from above the price to below) was triggered after the price bounced off the short-term support of the $32.25 mark.
Technical traders will keep a close eye on this stock as it nears the resistance of $37. It is important to note that a reversal of the dots near the upper resistance will be a sign of a failed break and will likely result in a change of momentum.
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