Stock of the Day: Broadcom

Now, let’s look at the chart. Broadcom has been trading inside a symmetric triangle formation, marked with black lines. This narrowing pattern often precedes a strong directional move, and today’s gap higher is set to act as a bullish breakout from the triangle. If the breakout holds once regular trading begins, this will trigger a long-term buy signal.

The key for buyers will be to defend levels above the triangle’s resistance line. Sustained momentum above that barrier will confirm the breakout and open the door for further gains. Should the price slip back inside the formation, however, traders will need to be cautious — but for now, the sentiment is decisively bullish.