BROADCOM INC. - v - 08/22/2023 (GMT)

Shares of Broadcom Inc. (symbol ‘AVGO’) share price has managed to make profits of around 15% and has been trading in a somewhat steady uptrend throughout the whole of the second quarter of the year. The company’s earnings report for the fiscal quarter ending July 2023 is set to be released on Thursday 31st of August, after market close. The consensus EPS is $9.42 compared to the same quarter of last year at $9.07. 
 
‘The recent uptick on the company’s share was mainly due to the approval by UK regulators of the acquisition of VMware for $69 Billion. This would enable Broadcom to accelerate its adoption of cloud technologies, while giving the financial resources and capabilities to fund its research and development (R&D) ambitions. The financial image of the company is also looking healthy since their current ratio as of 30/04/2023 was at 1.74 while the debt is at its lowest since January of 2020.’ said Antreas Themistokleous at Exness.
 
From the technical analysis perspective the price has been trading in a slightly descending range but the recent news about the acquisition going through has pushed the latest session up by almost 5% at the time of this report. Currently the price is facing the resistance of the 20 & 50 day moving averages while the Stochastic oscillator has been pushed back into “neutral levels” indicating that in the short term the price could move to either direction. The 50 day moving average is still trading well above the 100 day validating the overall bullish momentum shown on the chart whilst the level of $800 seems to be the strong technical support area which consists of the 38.2% of the daily Fibonacci retracement level as well as the psychological support of the round number.