BRCM Analysis for 11.10.2007

BROADCOM CORP. - BRCM

Zacks broker upgrades stock from "neutral" to "buy". This was reported October 19, 2007. Monthly chart shows price has been in a huge consolidation range. Head and shoulders reversal pattern potentially in place. Price currently finding short term support off key LIS at $31 - 30 level. Pattern indicates more downside to come.


Weekly chart shows 5 waves down from $50 high into $22 area downside support. From this $22 area support, buyers traced an abc three wave corrective pattern into $43 resistance. Interesting observation - Zacks broker upgrade from "neutral" to "buy" was reported October 19, 2007; the stock sold off ever since the upgrade was announced.

Daily chart shows huge gap down shortly after broker upgrade. Look for further downside momentum.