BRCM Trade Follow Up

On 2/28 I listed BRCM as a short trade

The trade has done pretty well especially considering the market environment, however it is in the semiconductor group which is becoming oversold as I mentioned in an earlier post this morning. I know at least several people are in this trade so you may want to think about whether you want to ride out a correction or to cover, take your profits and re-establish the trade at higher levels.

 On the daily chart, BRCM makes a new lower low, which is also a good place to bounce the stock.

 There is a positive divergence on the 5 min chart, so it's possible a bounce is coming shortly.

If you decide to ride it out, the Trend Channel stop is around $40.35.

I would probably prefer to take profits and reinitiate the trade at higher levels once I see evidence of the bounce beginning or you can also scale out of the trade as well.