AVGO: Earnings Gap Up – Low Cheat Entry

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AVGO: Earnings Gap Up – Low Cheat EntryBroadcom Inc.BATS:AVGOvssebuyungoBroadcom (AVGO) has been digesting its massive run by forming a solid 4-Month Base. During this consolidation phase, we saw several clear Shakeouts and Support tests, which is exactly what you want to see to clear out weak hands before the next leg higher. The catalyst just arrived: a powerful Gap Up on Earnings. However, looking at the structure, this gap up is occurring out of a Low Cheat—meaning it is still relatively low inside the overall base. Because it hasn't fully cleared the major resistance yet, a gap up here is a nice time to start building a pilot position. The strategy is to keep adding to your position as the stock proves itself, saving your full size for when it officially breaks out of the top of the base. For aggressive traders: Watch AVL (2x Leveraged ETF) for amplified exposure. Reasoning: Strong Industry/Sector (Semiconductors / AI Infrastructure) 4-Month Base (Solid structural foundation) Shakeouts and Support (Weak hands cleared during consolidation) Earnings Gap Up (Fundamental catalyst driving institutional demand) Low Cheat Entry (Early pivot point inside the base) Leverage Option: AVL (2x ETF) If Labelled a Swing trade(2-6 Week Holds) Entry: Start pilot position on the earnings gap up (See Chart) Profit Taking: Sell 1/3 at Goal 1 Final Exit: Remainder at Goal 2 If labelled a long term trade (3-12 Month Holds) Entry: Start building position on the gap up. Scale In: Keep adding in stair steps until the stock officially breaks out of the base. Exit Signal: Close below 20-day EMA (your trend guide) or 50EMA. Why: Scaling in on a Low Cheat allows you to capture the earnings momentum while managing risk until the full breakout is confirmed. Note: Remember: Every long-term investment alert can also be played as a swing trade. I normally use half the risk that I show here, this is because I am okay re-entering if it fails and it gives a better R/R ratio