The stock (AVGO) is in a long- and medium-term uptrend.
In the short term, it is undergoing a retracement phase, having been rejected twice by the POC 1, which reflects the volume area starting from November 2023, when the latest uptrend began.
After the second rejection from POC 1, which confirms its strength, the price is heading towards the $171 area, corresponding to a second volume zone, POC 2. This area acts as resistance, having already rejected the stock once, and we will see if it holds again.
To summarize, in the short term, the stock is retracing, using POC 1 as support and POC 2 as resistance. This phase has resulted in lower highs and higher lows, forming a pattern known as a symmetrical triangle.
The symmetrical triangle is generally considered a continuation pattern, meaning that the breakout often (but not always) occurs in the direction of the trend prior to the triangle's formation. However, it can also signal a consolidation phase or market indecision.
Interpretation:
Bullish Scenario: If the price breaks the resistance (the descending trendline of lower highs) and moves above POC 2, this would be a bullish signal.
Bearish Scenario: Conversely, if the price breaks the support (the ascending trendline of higher lows) and moves below POC 1, this would be a bearish signal.
It is important to confirm the breakout with an increase in volume, as a breakout without strong volume may indicate a false signal.
In the short term, it is undergoing a retracement phase, having been rejected twice by the POC 1, which reflects the volume area starting from November 2023, when the latest uptrend began.
After the second rejection from POC 1, which confirms its strength, the price is heading towards the $171 area, corresponding to a second volume zone, POC 2. This area acts as resistance, having already rejected the stock once, and we will see if it holds again.
To summarize, in the short term, the stock is retracing, using POC 1 as support and POC 2 as resistance. This phase has resulted in lower highs and higher lows, forming a pattern known as a symmetrical triangle.
The symmetrical triangle is generally considered a continuation pattern, meaning that the breakout often (but not always) occurs in the direction of the trend prior to the triangle's formation. However, it can also signal a consolidation phase or market indecision.
Interpretation:
Bullish Scenario: If the price breaks the resistance (the descending trendline of lower highs) and moves above POC 2, this would be a bullish signal.
Bearish Scenario: Conversely, if the price breaks the support (the ascending trendline of higher lows) and moves below POC 1, this would be a bearish signal.
It is important to confirm the breakout with an increase in volume, as a breakout without strong volume may indicate a false signal.
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면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.