As with a lot of other stocks, and indexes, the big area of resistance was the 50-day MA. There appear to be some pretty good sell signals for BRCM right now, including the usual oscillators (MACD, CCI, stochastics, etc.). It'll be interesting to see whether it can hold at the lower end of the gap from 10/10 to 10/11 (26.86). It'll also be interesting to see whether it retests the lower Donchian channel in the 18s.
Some indicators, such as SAR, were good in identifying the uptrend. But SAR hasn't yet given the sell signal. That's par for the course for SAR, which can lag a bit.
The Naz is beginning to look oversold in the short term, based on Nasdaq volatility indicators. But there's more room to the downside. Longer term, it's wavering in the midrange.
Indicators give some indication of where things might go. However, stocks and indexes take unexpected turns. Those who say they know what's going to happen should consider setting up booths at New Age fairs, or opening fortune-telling businesses in storefronts. Or -- best of all -- starting TA newsletters. Those who say they know what's going to happen and don't use stops should consider giving all their money to charity, rather than the market makers who'd get it otherwise. |
