In today’s Super Seasonals: Trade of the Week we will look at Broadcom Inc (AVGO).
Broadcom Inc. is a global technology company, which designs, develops, and supplies semiconductors and infrastructure software solutions.
Below is a summary of the seasonal stats on Broadcom. Additionally, analysts lowest price targets, coupled with time projections to year end are in the $166 to $170 areas. Also, there’s a bearish price gap in the $166 area that might be a decent upside target to fill.
Despite the best efforts of analysts, a price target is a guess with the variance in analyst projections linked to their estimates of future performance. Studies have found that, historically, the overall accuracy rate is around 30% for price targets with 12 month horizons, to as high as 60% or more in some historical studies. However, price targets do have the ability to sway investor sentiment, especially if they come from credible analysts.
Technical traders frequently establish their own price targets for each transaction. Although this approach is quite subjective, it typically reflects the trader’s risk tolerance, investment timeframe, and individual analysis.
Below is a look at the past 5-10 years, which I have a tendency to weigh a bit more validity too.
Below is a backtest if someone bought $1,000 worth of shares during the seasonal period in the past 10 years..
Below is an individual trade breakdown, per $1,000 invested in shares during the seasonal period over the past 10 years.
As you likely know, there are literally dozens of solid ways to approach trading Broadcom Inc (AVGO) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Keep in mind that seasonality is about probabilities, not certainties. Please remember to fully understand the risk before trading anything. It’s recommended to do your own research and consider consulting with a financial advisor before investing in any stock or options trade.
To learn more about seasonal information on other solid opportunities, click here SuperSeasonals .
Trade Smart,
Chad Shirley
