Broadcom stock drops as persistent short-term selling pressures price toward $368.66 level

Traders Union
All News
Financial News
Broadcom slides 3.54% today to $379.66

Highlights

Broadcom posted record quarterly results with $22.19 billion revenue and $9.31 billion net income, propelled by strong AI and data center demand.
The company secured major long-term chip supply agreements, including a partnership with Alphabet through 2031, providing multi-year business visibility.
AVGO trades under short- and medium-term moving averages with a bearish intraday bias, facing likely consolidation between $368.66 and $390.66.

Record quarter and AI demand boost outlook amid persistent selling

Broadcom recorded a record fiscal second quarter, reporting revenue of US$22.19 billion and net income of US$9.31 billion, evidence of strong operational performance driven by sustained AI and data center demand. The company launched its new AI XPV Platform through partnerships with Apollo and Blackstone, and secured substantial funding for large-scale infrastructure projects, accompanied by new agreements with AI innovators such as Anthropic and OpenAI. Recent insider activity was reflected in director Harry You’s purchase of 1,000 shares for nearly $374,000 on June 11, 2026, while Broadcom also moved to further strengthen its balance sheet via cash tender offers and fixed-income exchange initiatives. The company’s long-term chip supply agreements, including those through 2031 with Alphabet, further anchor its business outlook, though price action has remained under broader selling pressure.

Intraday divergence as oscillators contrast resistance and support levels

AVGO is currently below its MA-20 and MA-50 on the hourly chart, with key resistance defined by the Ichimoku Kijun at $383.38 and support at the long-term MA-200. Intraday oscillators show a divergence: the MACD is giving a strong buy signal while RSI indicates a sell bias, Stoch RSI and BBP are both in oversold territory, and the ADX and CCI register neutral readings. The opening gap down and moderate volatility reflect short-term seller dominance despite mixed momentum indicators.

Downside favored as volatility band contains near-term moves

In the short term, AVGO is likely to consolidate between $368.66 and $390.66, representing a volatility band relative to current levels. The probability model favors further downside with a 76% likelihood of a downward move versus 24% for an upward reversal. If the price breaks above $383.38, this could trigger a bullish scenario, while a move below $368.66 would signal additional weakness and an extension of recent declines.

Viktoras Karapetjanc, analyst at Traders Union, believes AVGO’s fundamentals remain robust despite short-term price weakness. Solid Q2 results and long-term deals with major industry players suggest ongoing business strength. Market sentiment is pressured by recent volatility, but forward-looking indicators are not fully aligned. He favors watching the $368.66 and $383.38 technical levels for confirmation of either further downside or potential reversal. "Strong earnings and AI partnerships give me confidence that AVGO’s long-term outlook remains positive, even as near-term trading may stay choppy."

Previously it was reported that Broadcom maintained a bullish structure supported by strong earnings and leadership in AI infrastructure, though rising overbought risks called for caution. The current environment marks a shift toward short-term downside pressure, making the $368.66 support and $383.38 resistance key levels for traders to monitor as consolidation unfolds.

Source of Data: AVGO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.