BRCM: Broadcom on the launching pad

Broadcom: BRCM is setting up for a terrific risk reward breakout play. The breakout level is the $37 area and the profit target is $43. In the current stock trading environment I do not recommend getting involved on the first breakout. Too many false moves lately.

I will be waiting for the first multi-day pause above the $37 level and then will begin to build my position in three pieces. Initial stop loss would be a close on the daily chart below $36.

Earnings are in two weeks (July 27) The best case scenario would be to begin accumulating our position before the earnings and sell into a good report.