As this week began to unfold BRCM put together a solid recovery rally after testing the December low and essentially forming a double bottom. However, the issue is on the defensive today in the wake of cautious commentary from Wachovia. The firm suggested BRCM faces a potential long-term competitive threat from INTC in the server chipset and Plumas chipset markets, potentially as early as the first half of this year. The stock has dropped back below its 200 day simple ma (38.80) on the comment and is in danger of slipping back below the trendline, broken this week, that had contained the downtrend off the Jan high. On a short term technical basis, BRCM is holding near the 62% retracement of this week's rally. However, without a sustained recovery back above the 200 day ma and near term chart barriers at 39.15 and 39.60, it will remain vulnerable to further losses and a breakout back below its Dec/Feb lows (36.57/36.45). Initial support under such a scenario is at 36 (50% of Oct/Jan rally) followed by the 34/33.50 congestion area.