Zeev's Turnips Patch-No Politics (ZEEV)

[ajtj99]

Larry, on the BRCM daily the leap over the 200SMA formed a gap, but that gap and 200SMA are support. However, I know Steve Lee's mechanical trading system "Al" will short a stock when it closes above the upper BB and then closes below it. I don't think Al would have been short BRCM in this situation.

http://stockcharts.com/def/servlet/SC.web?c=brcm,uu[h,a]daclyyay[dc][pb20!b50!b200!c13!c20!c50!i!d20...

Furthermore, there's a gap at 18.50 from January, which is also the .786 re-trace of the drop from the January high to the March lows. There's also a falling resistance line off the Dec/Jan highs that intersects that area.

The island reversal at the lows is bogus, but it might take some time to fill, as the old rising support off the October lows is now support after being gapped over. You might not see that gap filled until May.

Good luck. Pain is probably 15% loss near term versus the potential 10% gain you're probably banking on.

If you're really patient, there's a downchannel formed off the Dec/Jan highs and the Feb/March lows. That could take BRCM down to a re-test of the October lows eventually.