VMware vCenter security vulnerability exploited pressures Broadcom stock below $369.24 support

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Broadcom drops 3.18% to $379.52 today

Highlights

Broadcom reported fiscal Q2 2026 revenue of $22.2 billion, up 48% year-over-year, amid a major VMware vCenter security vulnerability exploitation.
A $10 billion share buyback program is underway with $7.8 billion already executed, supporting valuation as shares remain under overall selling pressure.
Shares of Broadcom closed at $379.52, down 3.18%, exhibiting strong short-term bearish momentum with price likely to oscillate between $362.55 and $396.49.

Security breach and buyback activity weigh against recent revenue gains

Broadcom faced operational and reputational challenges after reports of hackers exploiting a critical security vulnerability in its VMware vCenter software, with Tipranks noting this event on August 14, 2026. While recent financials have reflected strong performance — fiscal Q2 2026 revenue reached $22.2 billion, up 48% year-over-year according to Tipranks — immediate market sentiment has been shaped by security risks. In the background, Broadcom’s ongoing $10 billion share buyback program, with $7.8 billion executed in Q1 per 24/7 Wall St, continues to provide structural support for valuation, though price action has remained under broader selling pressure.

Seller dominance persists amid resistance and mixed oscillator signals

On the hourly chart, AVGO is trading below the SMA-20 at $401.9 and SMA-50 at $413.73, indicating short- and medium-term technical resistance. However, the price remains above the daily SMA-200 at $369.24, with the Ichimoku Kijun level at $406.71 acting as immediate resistance. Technical indicators show MACD and ADX in strong negative territory, while RSI is at 31.21 and CCI signals a Sell. Bull/Bear Power points to persistent seller dominance, whereas Stochastic RSI and the Awesome Oscillator deliver neutral signals, highlighting a divergence among oscillators.

Sideways consolidation likely as downside risks outweigh bullish reversals

Over the next several days, AVGO is expected to trade within a volatility band between $362.55 and $396.49. The probability of an upward breakout remains very low, with a much higher likelihood of a downside move if support at the lower end of this range fails. The base case scenario foresees AVGO consolidating sideways, while a bullish reversal would require a decisive close above resistance at the Kijun level.

Viktoras Karapetjanc, expert at Traders Union, sees Broadcom facing a tactical challenge as security risks pressure short-term sentiment despite robust fundamentals. Recent revenue growth and a substantial buyback program demonstrate strong operational momentum and shareholder commitment. However, the near-term outlook remains clouded by the immediate impact of the reported software vulnerability. Karapetjanc believes underlying fundamentals and macro trends are intact, but market participants will likely remain cautious until the security issue is addressed. "If the headlines shift back to Broadcom's growth story, renewed upside could materialize quickly."

Previously it was reported that Broadcom was experiencing sustained bearish pressure amid technical weakness and cautious investor outlook. The current analysis reinforces this downside scenario, with ongoing security-related headwinds contributing to heightened risk of a breakdown below established support levels in the coming sessions.

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.