Broadcom is it a good chance to buy in dip after 4Q earning

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By :  ,  Financial Analyst

Broadcom (AVGO): is it a good chance to buy in dip after 4Q earning?

Broadcom (AVGO), a developer of a range of semiconductors, disclosed fourth quarter adjusted EPS of 6.35 dollars, just above the estimate, up from 5.39 dollars last year on revenue of 6.5 billion dollars, also just ahead of the consensus, up from 5.8 billion dollars a year earlier. Although the result beat the estimation, the stock prices fell 1.5% in after market session.

Hock Tan, President and CEO of Broadcom Inc, said: "Our first quarter revenue outlook, which projects continued overall strength, is expected to show 13 percent year over year growth, all organic."

On a daily chart, the stock posted a pullback from $426 after breaking above the consolidation zone. The RSI also turned downward from the overbought level at 70. In fact, the prices are still trading above both rising 20-day and 50-day moving averages. The bullish readers could set the support level at $375, while resistance levels would be located at $426 and $457.

Source: GAIN Capital, TradingView
Related tags: Tech Stocks Stocks Earnings

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