Symantec $SYMC got a boost after reports indicated an acquisition bid from Broadcom $AVGO. Here's a report from Yahoo.com: Broadcom Acquiring Symantec Media reports say that Broadcom AVGO is acquiring security software maker Symantec SYMC for $15 billion. The formal announcement could be made as soon as today or after the July 4th holiday. Unfazed by President Trump’s move to block its acquisition of Qualcomm QCOM, the company and its determined CEO Hock Tan proceeded to transfer its headquarters to the U.S., so it could continue on its strategy of acquiring technology companies and squeezing efficiencies from the combinations. But those aspirations have shifted of late away from the semiconductor space that has been battered by trade tensions with China to infrastructure software (particularly hybrid cloud software), where such tensions don’t exist and where valuations are also more reasonable. That’s what led the company to acquire CA Technologies last year, and if the unconfirmed rumors are right, will lead to its Symantec buy this year. In a recent note, Morgan Stanley analyst Craig Hettenbach said after conversations with Broadcom CFO Thomas Krause, that Broadcom’s CA acquisition was already yielding a 14% return on investment. So the alteration in strategy is already successful for the company... We have discussed monitoring SYMC as it traded near a common support area in the $17.50-$18 area. We anticipated support and indeed price was held here a couple more times after the analysis. Price eventually climbed to $22 by July. SYMC Daily Chart (click to enlarge) Bullish Breakout or Consolidation?- The reaction to the potential acquisition was very bullish, pushing price from the $22 area to above 25.- However, note that this 25-26 area was a previous support area in early 2018. The fact that price is respecting this area as resistance tells us the market is no strongly bullish. - Furthermore, when we look at the daily chart, we can see that price has been making higher highs within the context of a consolidation. - The fact that price pushed to a new high on the year above $25 is not really a bullish breakout from consolidation - or is it.- I think if price does pullback, we should monitor the $22-$23 area. - This area should hold as support if the market has indeed turned bullish. - However, a break below $21 would be reflect a market that is still in consolidation. The $17.50-$18 support would be pressured again in this scenario, and I would not rely on this area for support anymore at that point.- But while price is above $22, I think there could be upside towards $28, which was a key support/resistance pivot seen on the weekly chart. SYMC Weekly Chart (click to enlarge)