Soft revenue guidance for Q4 2026: AVGO support levels in focus

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Broadcom drops 6.75% to $342.63 today

Highlights

Broadcom reported third-quarter fiscal 2026 revenue of $29.6 billion, up 86% year-over-year, and GAAP operating income of $16.0 billion.
Earnings per share reached $3.32, exceeding expectations, and the company kept its quarterly dividend at $0.65 per share.
Shares of Broadcom trade under persistent seller pressure below key moving averages, with the next 2 to 3 day range expected between $338.22 and $368.26 and further downside likely.

Revenue surge and earnings beat overshadowed by cautious outlook

Broadcom reported third-quarter fiscal 2026 results, with revenues rising 86% year-over-year to $29.6 billion, according to PR Newswire. GAAP operating income reached $16.0 billion, and non-GAAP margins were strong, reflecting efficient operations in the period. The company also maintained its dividend policy, announcing a quarterly payout of $0.65 per share. Despite also delivering an earnings beat, with EPS at $3.32 versus expectations of $3.16 as reported by Public, a more cautious revenue outlook for the next quarter weighed on market sentiment, though price action has remained under broader selling pressure.

Bearish momentum holds as multiple indicators and resistance align

On the technical side, AVGO/USD is trading below the MA-20 at $369.14, the MA-50 at $365, and the MA-200 at $369.63, reflecting clear seller dominance over all major timeframes. The Ichimoku Kijun level stands at $368.04, serving as immediate resistance. While MACD signals a strong buy, ADX is neutral; momentum signals remain mixed. Both RSI at 48.56 and CCI lean bearish, whereas Stochastic RSI is neutral, and Bull/Bear Power continues to indicate oversold intraday conditions. The Awesome Oscillator further aligns with a strong sell tone, supporting continued downside pressure in the technical landscape.

Limited upside as volatility persists within well-defined trading band

In the short term, price action is expected to remain volatile within a $338.22 to $368.26 band over the next two to three sessions. The likelihood of an upward breakout is very low, and sellers remain firmly in control, making a sustained rebound unlikely. The base case envisions AVGO moving sideways between support and resistance. If the price breaks above $368.04, a bullish move could unfold, while a drop below $338.22 would likely trigger further selling and confirm continuation of the current downtrend.

Viktoras Karapetjanc, expert at Traders Union, sees strong top-line growth and robust performance in Broadcom's core segments supporting a positive long-term macro and fundamental outlook. He believes the recent results and dividend continuity reinforce confidence, even as near-term technicals signal seller control. Short-term volatility remains likely, but the overall picture is structurally constructive. "Broadcom’s operational momentum and resilient fundamentals give me confidence that the current weakness is just a tactical pause, not a change in the long-term story."

Earlier, analysts noted that Broadcom’s shares were under persistent downside pressure as technical signals and cautious forward guidance overshadowed strong AI-driven revenue growth. The current setup reinforces this bearish outlook, with sellers maintaining control and the critical $338.22 level now serving as a key downside risk to monitor in the days ahead.

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.