Broadcom is a holding company. Through its subsidiaries, Co. designs, develops and supplies a range of semiconductor and infrastructure software solutions. Co. maintains design, product and software development engineering resources at locations in the U.S., Asia, Europe and Israel. Co. has two reportable segments: semiconductor solutions and infrastructure software. Co.'s semiconductor solutions segment includes its product lines and intellectual property licensing. Co.'s infrastructure software segment includes its mainframe, distributed and cyber security solutions, and its fiber channel storage area networking business.
When researching a stock like Broadcom, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from AVGO Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for AVGO stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AVGO 200 day moving average ("AVGO 200 DMA"), while one of the most popular "shorter look-backs" is the AVGO 50 day moving average ("AVGO 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Broadcom. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AVGO 200 DMA and the AVGO 50 DMA, we get a moving average convergence divergence indicator ("AVGO MACD"). The AVGO MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis