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Actionable news in AVGO: Avago Technologies Limited,

Avago (AVGO) Stock Gets a Boost, Charts Are Less Convincing

NEW YORK (TheStreet) -- Avago Technologies (AVGO - Get Report) is having a decent upside bounce today, but we tend to doubt that this uptick is the beginning of a sustained move at this time.

In this chart of AVGO, above, we can see that the price and the On-Balance-Volume (OBV) line peaked in June.

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We see no meaningful bullish divergence between the price action and the momentum study so far. Prices are below the 200-day simple moving average and are rallying to the underside of the average where they could fail. We'll keep an eye on it.

In this longer-term weekly chart of AVGO, we can see what could be a small head-and-shoulders top formation the past year with the $105-$100 area as a better support zone.

Pattern recognition is probably more of an art than a science and chartists deal in probabilities and not certainties.

Bottom line: AVGO looks like it has made...


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