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Broadcom (AVGO): The share has increased nearly tenfold in the past three years from 2021 to 2024. 'Should I stay or should I go now?'


[08 July 2024]


Today, StockCharts365.com has taken a closer look at the company Broadcom Inc. (Ticker on Nasdaq: AVGO).


The share has increased nearly tenfold in the past three years from 2021 to 2024. 'Should I stay or should I go now?'


Probably go and sell/short the stock now in the short term now, thinks StockCharts365.com.


Read more about this in the technical analysis of Broadcom Inc. (Ticker on Nasdaq: AVGO) below here.


 

First, a little about Broadcom Inc. (Ticker on Nasdaq: AVGO)


Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue.


It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets.


It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone.


In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.


Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.


To read more about the company, visit their website here:To read more about the company, visit their website here:



 

Technical Analysis of Broadcom Inc. (Ticker on Nasdaq: AVGO)


Technical Analysis of Broadcom Inc. (Ticker on Nasdaq: AVGO):


Broadcom (AVGO), which at the time of writing on Monday 08 July 2024 is traded for around USD 1,731.00, has had a very strong rise in recent years, but now there may be a correction soon for this share.


The share has increased nearly tenfold in the past three years from 2021 to 2024, and now the share is facing significant technical resistance around the current price level, and up towards the upper trend line in this long-term upward trend.


There is also a recent 'gap' up which, according to technical analysis theory, should be 'covered' and this indicates that a correction may come in the share within a short time.


The share is heavily overbought in the short and medium term, and thus now faces considerable technical resistance around the current price level.


The overall technical picture for Broadcom (ticker on Nasdaq: AVGO) thus signals that the stock is probably facing a correction and initially and in the very short term down to around USD 1,500 (and close the gap), but preferably also down to test the support level at the 200-day moving average (down towards USD 1,220 - 1,300).


There may well be a test of the support level down towards the lower trend line in the long-term rising trend also during the next 3-9 months, which in that case will mean a decline down to around USD 940.00 - 1,000.00.


Yes, the overall technical picture today for Broadcom Inc. (AVG) indicates a short-term correction down to around USD 1,400 - 1,450 and in the medium term perhaps a correction down to around USD 940.00 - 1,000.00.


 

NB! Remember to have read and understood the disclaimer.

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