BRCM - How to Play the Corrective Phase

BRCM was the worst performer in the NDX Friday and the SOX was the worst tech sector. Looks like we could be in for more profit taking on this name if the current corrective phase continues. The best way to play it is by following the action closely and staying nimble. There will be plenty of opportunities to long and short BRCM as it makes its way to the next support level.

The daily chart highlights support and resistance. Also note that all three lines on the ADX are converging and will resolve themselves in the near-term.



The 60 minute chart is used to plan the next move more closely. Support and resistance lines have been applied as well as short-term trendlines. If we bounce tomorrow, the target is the green highlight between $45-45.50. Also notice that on this timeframe the ADX has resolved itself and supports a bearish move over the near term. Look for the reversal signal on your preferred intraday timeframe.