Broadcom: Stairs up and elevator down?Broadcom Inc.BATS:AVGOTradeStationBroadcom has dropped from a record high in early June. That could make some traders ask if the chip stock took the stairs up and is now taking the elevator down. The first pattern on today’s chart is the bearish gap on June 4 following mixed results and guidance. AVGO has continued lower without even attempting to fill the gap. That may suggest sellers are in control. Second is the June 8 close of $396.60. The stock has been unable to close above that level since, which could reflect the establishment of new resistance. Third, the 8-day exponential moving average (EMA) has crossed below the 21-day EMA and MACD is falling. Those signals may be consistent with a short-term downtrend. Fourth, the 21-day EMA has slipped beneath the 50-day simple moving average. That previously occurred in late December, and was followed by months of weakness. (See the orange arrows.) Fifth is a potential price zone between roughly $295 and $300. Could potential buyers look for more movement toward the area before stepping in? Finally, AVGO is an active underlier in the options market. (Its average daily volume of 301,500 contracts ranks 16th in the S&P 500, according to TradeStation data.) That could help traders take positions with calls and puts. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. Learn more here about TradingView’s Broker of the Year! Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See www.TradeStation.com/DisclosureOptions. Visit www.TradeStation.com/Pricing for full details on the costs and fees associated with options. Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the Margin Disclosure Statement at www.TradeStation.com/DisclosureMargin. TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.