AVGO shares edge lower amid consolidation between $380 support and $425 resistance: weekly forecast

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Broadcom slips 2.74% this week

Highlights

AVGO maintains a strong bullish trend, trading well above major moving averages and signaling medium- to long-term strength.
Short-term consolidation has emerged after a negative weekly close despite positive momentum, suggesting a potential pause before trend continuation.
Expected trading range for the next week is $380 to $425, with a 75% probability of an upside move signaled by most key indicators.

AI revenue surge and new investments shape weekly sentiment

Broadcom reported record AI-related revenue of $10.8 billion for the second quarter, up 143% year-over-year, and issued third quarter guidance of $16 billion. The company continues to expand its AI infrastructure capabilities through advancements in custom chips and data center networking, and has announced a quarterly dividend of $0.65 per share, payable on June 30 to shareholders of record as of June 22. Recent insider share sales and new institutional investment activity provide additional context to recent developments.

Momentum persists but overbought risks emerge as consolidation begins this week

On the weekly timeframe, AVGO stays clearly above all major moving averages, with the $369.91 (MA-20) providing near-term support. Weekly technical indicators paint a mixed image: MACD and ADX continue to trend higher, confirming positive momentum, but the RSI and Stochastic RSI are moderately elevated, suggesting some overbought risk, while the BBP indicates buyers retain control. Weekly support sits at $380, with resistance at $425, bracketing the price action as the asset enters a period of consolidation.

Consolidation expected with upside breakout risk in the coming week

For the upcoming five trading days, a consolidation phase is likely as AVGO trades in a range of $380 to $425. There is about a 75% chance of an upside move, with MACD, ADX, and RSI indicating ongoing bullishness, and only CCI signaling neutrality. The primary scenario foresees maintenance of current levels; a breakout above $425 would signal a retest of recent highs, while a move below $380 could expose the asset to deeper retracements, though this is less probable given the current weekly momentum.

Viktoras Karapetjanc, analyst at Traders Union, sees Broadcom’s weekly structure as overwhelmingly positive. He notes that the asset held firmly above all major moving averages this week, with the MA-20 acting as reliable support. Robust AI-driven revenue growth, new dividend announcements, and sustained institutional interest reinforce the constructive outlook. Momentum indicators remain strong, and the price is consolidating at elevated levels, setting the stage for further bullish action. "With bullish signals intact and macro tailwinds from AI, I expect AVGO to maintain its upward trajectory and view a breakout above $425 as a likely scenario in the coming week."

Previously it was reported that Broadcom maintained a constructive technical and fundamental outlook, supported by strong AI-driven growth and improving financials. The latest results reinforce this positive view, with record AI revenue and sustained bullish momentum positioning AVGO for a potential breakout should resistance at $425 be cleared in the near term.

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

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