Broadcom
Corporation (NASDAQ: BRCM)
Market Call™ for February 7, 2001
Contributed by Mark Seleznov, TrendTrader.com.
The purpose of this Market Call section is to
educate readers in technical analysis patterns and indicators. As with all investment
information, you need to research information and consult your financial advisor before
initiating any strategies that are contained in Market Call.
Also, you must realize that as with all trading strategies,
opinions can change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set
ups, and examples of entry and exit strategies.
Support and Resistance
Levels
Support levels are the price where the majority of traders feel the value is
a good buy.
Resistance is the level in which the majority of traders feel prices will
move lower.
Think of security prices as a war. It is a battle between a bull (the
buyer) and a bear (the seller). The bulls push prices higher and the bears
push prices lower. A buyer that feels an area has good value will buy at
that level. The seller that feels that a stock has reached fair value will
sell at that higher fair value price. The direction prices move reveal who
has won the battle.
Let's take a look at Broadcom, BRCM
Broadcom has been on a steady decline from about 120 on Jan. 31, to its
close today at 92 �. This downward trend in Broadcom has been continuous
for the past 5 days and should be expected to continue until we see a
reversal in this trend. With a break through its next support level at about
90 �, this stock has room to continue lower. On the 30 minute chart, the
MACD continues to verify this with a downward trend and a cross down through
the MACD signal line. Look to short Broadcom at about 90 �, with a stop at
92 13/16. If your indicators should show a possible trend reversal prior to
92 13/16, then tighten up your stop as necessary.
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Call Information
Mark A. Seleznov is a General
Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in
Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on
the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader.
Mark is an author and recognized expert in equity Day Trading. He conducts seminars in
Equity Day Trading and offers his firm traders training and support. If his firm holds any
positions in the public companies he writes about, it will be noted at the bottom of his
article.
Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner
of Trend Trader,
LLC. For information on obtaining Market Calls for your web site,
newspapers, or publication, contact Trend Trader, LLC at 602-948-1146
Disclaimer: Trading in securities may not be suitable for
all individuals. Consult your broker or other professional to determine your suitability.
This is not an offer to buy or sell securities. The advice given above is of a general
nature and should not be taken as a recommendation to buy or sell the referenced security.
Copyright �
1998-2000 Tulips and Bears LLC.
All Rights Reserved. Republication of this material,
including posting to message boards or news groups,
without the prior written consent of Tulips and Bears LLC
is strictly prohibited.
Last modified: February 06, 2001
Published By Tulips and Bears
LLC
