AVGO broke above 200-day MA; confirmation requires follow-through and RSI > 60.

This is the chart for Broadcom. Broadcom's alert was triggered this morning as it finally broke its 200-day moving average level. Broadcom looked very different from Nvidia or some other semiconductor names. It has been below the 200-day moving average level, and has been fluctuating there for over a month. So, when you have a stock that is fluctuating below its 200-day moving average, the question remains: when will it move upwards? When will we break that 200-day moving average? That's exactly what we saw here. The Relative Strength Index (RSI) is not quite above 60, which is something I would have liked to see. So, I would say that I like the fact that it's above the 200-day moving average today. In a scheme like this, it's all about following through. It's all about tomorrow, Wednesday's session, and Thursday. Do you see further accumulation indicating that that one-day breakout above the 200-day level was not just a coincidence? It's the beginning of something beyond that. So, when a stock is below the 200-day level, I simply look for when the stock will move back up above that level. I usually find that to be a very important limit. Also note the presence of a Fibonacci level there, approximately between 367 and 370. So, we are going beyond that level as well. Now, it's a matter of follow-up. Will we see further gains? Is the Relative Strength Index (RSI) exceeding the 60 level? This will confirm the likelihood of a new breach in Broadcom.