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Broadcomtechnicalanalysis

Technical Analysis of Broadcom Inc (AVGO)The stock ( AVGO ) is in a long- and medium-term uptrend. In the short term, it is undergoing a retracement phase, having been rejected twice by the POC 1, which reflects the volume area starting from November 2023, when the latest uptrend began. After the second rejection from POC 1, which confirms its strength, the price is heading towards the $171 area, corresponding to a second volume zone, POC 2. This area acts as resistance, having already rejected the stock once, and we will see if it holds again. To summarize, in the short term, the stock is retracing, using POC 1 as support and POC 2 as resistance. This phase has resulted in lower highs and higher lows, forming a pattern known as a symmetrical triangle. The symmetrical triangle is generally considered a continuation pattern, meaning that the breakout often (but not always) occurs in the direction of the trend prior to the triangle's formation. However, it can also signal a consolidation phase or market indecision. Interpretation: Bullish Scenario: If the price breaks the resistance (the descending trendline of lower highs) and moves above POC 2, this would be a bullish signal. Bearish Scenario: Conversely, if the price breaks the support (the ascending trendline of higher lows) and moves below POC 1, this would be a bearish signal. It is important to confirm the breakout with an increase in volume, as a breakout without strong volume may indicate a false signal.
NASDAQ:AVGO
by Giovanni_Bandini
Broadcom Stock Struggles After Disappointing EarningsBroadcom ( NASDAQ:AVGO ) Faces Challenges Post Earnings: What Investors Need to Know? Broadcom Inc. (NASDAQ: NASDAQ:AVGO ), a key player in the semiconductor and software sectors, has seen its stock tumble after the company reported a loss in its fiscal third-quarter earnings. The loss was primarily attributed to merger-related expenses and amortization costs associated with its recent acquisition of VMware. Here, we dive into the fundamental and technical aspects of Broadcom’s stock, analyzing the challenges and opportunities that lie ahead. Earnings Report Highlights: - Broadcom swung to a net loss of $1.875 billion in its fiscal third quarter, compared to a profit of $3.3 billion in the same quarter last year. - Adjusted earnings, which exclude significant acquisition-related expenses, came in at $1.24 per share. - The company’s revenue for the quarter met expectations, but its forward guidance of $14 billion for the fiscal fourth quarter fell just shy of analyst predictions. - CEO Hock Tan emphasized the continued strength of Broadcom’s AI-driven semiconductor solutions, noting a projected $12 billion in AI-related revenue for the full year, driven by ethernet networking and custom accelerators for AI data centers. Merger Impact: The recent acquisition of VMware has added significant restructuring costs to Broadcom’s financial statements. The integration of the software firm is crucial for Broadcom's long-term strategy of diversifying its revenue streams beyond semiconductors, particularly as it aims to capitalize on the rapidly growing demand for AI and data center solutions. Market Reaction: Broadcom’s stock dropped over 6% in after-hours trading following the earnings release. Despite this pullback, the stock has risen approximately 40% year-to-date, benefiting from the market’s appetite for AI-related growth stories. However, the recent dip underscores investor concerns about the near-term impact of acquisition-related expenses and the company’s modest revenue outlook. Technical Analysis Symmetrical Triangle Breakdown: Broadcom’s stock has been consolidating within a symmetrical triangle pattern on declining volume since mid-June, a formation that often precedes a breakout or breakdown. The recent disappointing revenue outlook has pushed the stock below the triangle’s lower trendline, indicating a bearish breakdown that could signal the start of a new downward trend. Key Support Levels to Watch: 1. $141 Level: This level is near a consolidation zone that formed between March and June, marking the first potential area of support. If this level holds, it could provide a buying opportunity for investors looking for a near-term bounce. 2. $120 Level: Should the stock fall below $141, the next significant support lies at $120, an area aligned with prominent swing lows from earlier in the year. This level could attract buyers who see the pullback as a chance to enter at a more attractive price. 3. $110 Level: Further downside could take Broadcom to $110, near the low of a retracement that occurred in early January following a strong December rally. This level could serve as a critical test for Broadcom’s longer-term uptrend. RSI and Market Sentiment: Currently, Broadcom’s Relative Strength Index (RSI) hovers around 40-45 in premarket trading, placing the stock in oversold territory. This indicates that the recent sell-off may be overextended, potentially setting up the stock for a short-term rebound. However, the broader sentiment remains cautious given the company's near-term financial headwinds. Outlook for Broadcom: Is the Stock a Buy, Sell, or Hold? Broadcom's mixed earnings report and subdued revenue guidance have introduced a degree of uncertainty into the stock’s near-term trajectory. While the company’s ongoing integration of VMware and its focus on AI and data center solutions present long-term growth opportunities, the immediate impact of acquisition costs and a lukewarm revenue outlook have weighed heavily on investor sentiment. For those with a long-term investment horizon, the current pullback could present a buying opportunity, especially if Broadcom ( NASDAQ:AVGO ) manages to stabilize at one of the key support levels mentioned. However, traders should remain vigilant for potential further downside, particularly as the stock navigates the aftermath of its recent technical breakdown. In summary, Broadcom’s fundamentals remain strong, underpinned by its leadership in AI-driven semiconductor solutions. However, the stock’s technical indicators suggest caution is warranted in the short term. Investors should watch closely for signs of stabilization before committing new capital, particularly given the broader market's current volatility.
NASDAQ:AVGOShort
by DEXWireNews
Broadcom Revenue Beats Estimates As AI Powers DemandTech giant Broadcom ( NASDAQ:AVGO ) surpasses market expectations for first-quarter revenue fueled by heightened demand for advanced networking chips powering artificial intelligence (AI) applications. However, shares dip post-announcement amidst mixed investor sentiments. Key Highlights: Broadcom's robust performance in the first quarter underscores the pivotal role of AI in driving demand for cutting-edge networking solutions, particularly within cloud infrastructure. While smaller rival Marvell Technology faces challenges with weak demand for custom AI chips, Broadcom ( NASDAQ:AVGO ) stands resilient with its diversified portfolio and strategic positioning in the AI computing landscape. Despite maintaining a conservative annual revenue forecast, Broadcom's continued growth trajectory and expansion into software and tech firms affirm its status as a key player in the evolving tech ecosystem. Market Dynamics: The surge in demand for infrastructure upgrades, driven by the proliferation of generative AI applications, propels Broadcom's semiconductor solutions segment, albeit falling slightly short of revenue estimates. Infrastructure software revenue experiences a significant uptick, surpassing expectations and contributing to Broadcom's overall revenue growth. Future Outlook: Broadcom's entrenched position in AI-driven data center infrastructure positions it as a prime beneficiary of the ongoing AI revolution. Continued investments in software and tech acquisitions, coupled with sustained innovation in networking solutions, are poised to drive Broadcom's future growth and market relevance. Conclusion: Broadcom's ( NASDAQ:AVGO ) resilience in navigating market challenges while capitalizing on emerging opportunities reaffirms its status as a leading player in the tech industry. As AI continues to reshape the technological landscape, Broadcom's ( NASDAQ:AVGO ) expertise in providing essential networking solutions places it at the forefront of innovation and growth.
NASDAQ:AVGOLong
by DEXWireNews
Broadcom (AVGO) -> Stronger Than NvidiaMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️ I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on Broadcom. Over the past 12 months Broadcom stock rallied more than 120% towards the upside, following the major hype in the whole semiconductor and AI sector. After this recent pump it is quite expected that we will see a short term correction and if Broadcom retests the previous all time high at $630, this will be a perfectly bullish setup. - - - - - - - - - - - - - - - - - - - - I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy. Keep the long term vision🫡
NASDAQ:AVGOShort
by basictradingtv
30
Looking to buy Broadcom at 50 EMA.Broadcom - 30d expiry - We look to Buy at 601.11 (stop at 579.11) Price action continues to trade around the all-time highs. Daily signals are bullish. There is no clear indication that the upward move is coming to an end. We look to buy dips. 50 1day EMA is at 600.11. A lower correction is expected. Bespoke support is located at 600. This stock has seen good sales growth. Our profit targets will be 654.32 and 664.32 Resistance: 648.50 / 665.00 / 677.76 Support: 625.00 / 615.00 / 600.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NASDAQ:AVGOLong
by VantageMarkets
AVGO | Bearish trend started. Go Short!When it comes to AVGO , the price is likely to fall because of the weak support areas. Also the price has broken the parallel channel; that means the price’ll fall until it find a support area.So your first target would be the S1; where price got rejected because of the huge demand. If you find this technical analysis useful, please like & share our ideas with the community. What do you think is more likely to happen? Please share your thoughts in comment section. And also give a thumbs up if you find this idea helpful. Any feedback & suggestions would help in further improving the analysis. Good Luck! Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
NASDAQ:AVGOShort
by maxprofwizard