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Breakout from Rounding Bottom
Breakout from rounding bottom on Major Support (MS). BRCM sold off aggressively from last month's new 52-week high. There are signs that it is bottoming on the daily chart, including no down side follow through to bearish bars. It is finding MS from the May breakout area. After a bullish gap up, yesterday's real body closed in the upper part of the prior bar's bearish body, showing that the bulls are getting more aggressive. Additionally, although not shown, it is a Buy Setup on the weekly chart; the hourly chart is basing bullish; and the semiconductor index showed relative strength and may bounce more.
chart courtesy of Mastertrader.com
A breakout from a rounding base on MS often has bullish follow through.
buy BRCM over previous day high ($21.08), with a protective stop under $20.68, a 30-min. pivot.
$1.00 to $2.00 move.
BRCM met the high $2.0 target and next day it gapped up trading an additional $2.00+.
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