Broadcom stock faces support test at $368.99: Downside targets to watch

Traders Union
All News
Stocks
Broadcom slides 5.12% to $397.49 today

Highlights

Broadcom established an XPV financing vehicle with Apollo and Blackstone, securing $35 billion for XPU deliveries to Anthropic and OpenAI and targeting 1GW of Anthropic capacity by mid-2026.
Institutional demand for Broadcom stock continues with ARK Invest acquiring 39,020 shares valued at $16.2 million ahead of earnings scheduled for September 2, 2026.
Shares of Broadcom fell 5.12% to $397.49 and face short and medium-term technical resistance, with the next several days forecast to trade in a $388.77 to $417.94 range and a slight downside probability.

Robust AI pipeline and institutional buying counter broad selling pressure

Broadcom announced the creation of an XPV financing vehicle in partnership with Apollo and Blackstone, securing an initial $35 billion tranche for XPU purchases by Anthropic and OpenAI, according to Investing.com. This capital commitment targets the delivery of 1GW of Anthropic capacity by mid-2026, providing Broadcom with a substantial contractual pipeline and increased strategic visibility in AI infrastructure. Meanwhile, ARK Invest's recent acquisition of 39,020 Broadcom shares valued at $16.2 million, as reported by Benzinga, highlights continued institutional interest in the company ahead of its next scheduled earnings on September 2, 2026, as per TipRanks. Despite these positive corporate developments, price action has remained under broader selling pressure.

Bearish momentum persists as resistance constrains attempted rebounds

AVGO/USD is trading below both the MA-20 ($418.81) and MA-50 ($421.63) levels, with the MA-200 at $368.99 providing long-term support. The Ichimoku Kijun sits at $419.02, acting as immediate resistance for any rebound. Among momentum indicators, MACD is Neutral and ADX indicates a Buy, while RSI stands at 47.97 and signals Sell. Bull/Bear Power points to sellers dominating intraday momentum, and AO is on a Strong Sell, supporting ongoing downward movement. Stochastic RSI and CCI remain in neutral territory, reflecting underlying market indecision.

Downside risks edge higher as range-bound trade is expected

Over the next several days, AVGO/USD is likely to consolidate within a forecast range of $388.77 to $417.94, reflecting typical volatility for the period. The probability of an upside move stands at 45%, giving a modestly higher odds to further downside continuation at 55%. If price breaks above $419.02, additional buying interest could emerge, whereas a move below $388.77 would likely accelerate declines.

Viktoras Karapetjanc, expert at Traders Union, sees the recent $35 billion XPV financing deal as a strong signal of Broadcom’s positioning in AI infrastructure. Institutionally, ARK Invest’s sizable purchase reflects confidence ahead of next earnings. Still, AVGO remains under short-term pressure with price trading below key averages. Karapetjanc believes long-term fundamentals are intact, but near-term consolidation is likely. "Strategic partnerships are setting the stage for growth, but patience is required until technical momentum aligns with fundamentals."

Previously it was reported that Broadcom shares were consolidating as investors weighed recent product developments and strategic alliances against cautionary technical signals. The current analysis adds a new dimension with a weaker technical setup and renewed downside risk, making a break below $388.77 an important level to monitor 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

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.