AVGO - Broadcom Bucking the Sector Trend

As the semi sector continues to be hammered this one is breaking out. The 262 level is an important extension, and an area to look for a reversal and pullback as traders exit long positions. We are looking for a pullback to the 235 level and bullish reversal for a potential swing trade. No sense in chasing, when it is likely we get better prices in the near term. The current candle is showing signs of exhaustion here, no sense in buying into a potential top with the NASDAQ looking like it wants to sell off.

Disclosure: No current positions, looking for a swing trade setup.