Hi Traders,
Licia's back this week with two picks, and I love the contrast on these. One is an AI-era heavyweight that keeps bouncing off the floor like it's got something to prove. The other is a commodity play showing cracks in the foundation.
She's using her charts and candlestick patterns to time both sides. One long, one short. Two very different stories.
Here's what she's seeing…
The AI Stock That Won't Stay Down
Add Broadcom (AVGO) to my love column. The stock just held my support for a third time and bounced with a bullish piercing candle, which tells me this downtrend could be running out of gas.
Of course, we need confirmation Friday morning with the stock opening and trading higher.
My longer-term price target is back to the median line (red line) at $352.29.
If you don't know AVGO, you should. They build the chips that power data centers, wireless networks, and increasingly, AI infrastructure. Think of them as one of the companies laying the plumbing for the entire AI boom, right alongside Nvidia (NVDA).
Cracks in the Crop Kingdom
On the flip side, I like Nutrien (NTR) as a short. If it breaks below the 20-day moving average, I'm looking for a move down to the 50-day moving average, a drop of about $4.75.
The relative strength index is bearish, and MACD just turned bearish too.
NTR is the world's biggest potash producer, the stuff that goes into fertilizer. They also run a massive retail network supplying farmers with everything from seeds to crop protection products. It's a textbook cyclical commodity play, so when agriculture and crop prices move, NTR moves with them.
Trade Accordingly,
Licia Leslie
That's the rundown from Licia this week: A semiconductor giant bouncing at support for the third time, and a fertilizer stock with bearish signals piling up on both RSI and MACD.
The question is, will either be the Play of the Week?
Join the Ticker Highlight Show Premium before Monday at 10:30 AM ET to find out.
See you there,
Charles Delvalle
Managing Editor, Option Pit