After slumping severely in early July following news that it would acquire CA Technologies, Broadcom has sprung to life. The company is looking so strong that it may actually light a fire among other struggling semiconductor stocks.

Last week’s powerful surge higher (following a very positive Q3 earnings report) was on very high volume; many indicators are now looking bullish.

Monday’s move up was a strong follow through; notice the increase in money flow. Institutions are continuing to pile into this stock in a big way. RSI is overbought here but that is not a reason to sell. After such a big move higher, we might see a pause as the stock is now banging up against the 200 ma. Some gaps remain, and we expect those to be filled eventually. I think Broadcom is poised to make a new all-time high.