Broadcom shares weekly forecast: Decline stretches into oversold territory as buyers remain sidelined

Traders Union
All News
Stocks
Broadcom slips 0.49% this week

Highlights

Shares of Broadcom edged lower to $366.44 over the week and are trading below key moving averages.
Bearish momentum persists as the stock remains in a flat trend, with indicators showing oversold conditions and selling pressure.
Broadcom stock is expected to consolidate between support at $350.07 and resistance at $369.16, with a 77% chance of further decline.

Credit risk and cloud expansion drive sentiment shifts over the week

Broadcom is drawing heightened attention ahead of its September 2, 2026, fiscal Q3 earnings report, as Bloomberg and Yahoo Finance have highlighted growing concerns about the company's exposure to credit risk stemming from expanded off-balance-sheet guarantees and AI chip financing commitments. This has led to a measurable increase in Broadcom's credit default swaps and recent pressure on the stock, according to Bloomberg. Additionally, Yahoo Finance reported that Rackspace Technology has launched a managed cloud platform built on VMware Cloud Foundation 9.1, showcasing further adoption within regulated industries.

Bearish momentum holds as narrow range and oversold signals persist

On the daily chart, Broadcom stock is showing a flat trend with a contained move within a narrow range, as volatility reached 5.53% in the past seven days. Bearish momentum dominates, with the MACD in sell territory and the Bull/Bear Power indicating an oversold condition at -16.93, while RSI at 34.69 is approaching oversold but not yet extreme. The key support level is at $350.07 and nearest resistance sits at $369.16, with the Ichimoku Kijun at $394.03 acting as additional resistance. The structure implies ongoing pressure, with buyers yet to find footing above the main resistance levels.

Downside bias prevails as support and resistance contain next week’s trade

Next week, the expected trading range is $348.46 to $375.1. The probability of an increase stands at 23%, while a decrease is more likely at 77%. The base case is continued consolidation between support at $350.07 and resistance at $369.16. A move above $369.16 opens the door for a test of $375.1, while a break below $350.07 would risk further downside toward $348.46.

Sholanke Dele, market strategist, notes that Broadcom shares have traded in a tightly contained range this week amid growing concerns about credit risk and increased caution in the broader market. He sees bearish momentum firmly in place, with buyers staying on the sidelines and technicals showing limited appetite for risk. The probability of further downside remains high, especially with price action gravitating near key support at $350.07. "As long as conviction stays weak and we fail to clear $369.16, I see no case for a sustained rebound next week."

Earlier, analysts noted that Broadcom faced ongoing downside risk due to technical weakness, with any potential shift hinging on buyers overcoming critical resistance. With recent developments highlighting increased corporate credit risk and new sector partnerships, traders should closely monitor the $350.07 support and $369.16 resistance, as a decisive break from this range may signal the next directional move.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.