Broadcom stock under support pressure: Downside targets to watch

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Broadcom drops 4.4% to $346 today

Highlights

Broadcom projected fourth-quarter revenue of $34.8 billion, missing Wall Street consensus and raising concerns about AI chip demand and margins.
The revenue shortfall has created doubts about Broadcom stock maintaining its recent sales growth pace.
Shares of Broadcom fell 4.4% to $346.04 with strong short-term selling evidenced by multiple oversold indicator signals and a projected trading range of $339.78 to $363.34.

Revenue forecast miss sparks doubts on AI chip-driven growth

Broadcom's fiscal fourth-quarter revenue guidance of $34.8 billion, reported by Tradingkey, fell short of Wall Street's consensus estimate and signaled to the market that expectations for AI chip demand and profit margins may be overestimated. This shortfall has driven concerns about the company's ability to sustain recent levels of sales growth, creating pressure on investor sentiment. Broader market reaction to this earnings guidance reflects heightened sensitivity to any indications of slowing demand in the sector.

Mixed momentum as technical resistance limits rebound outlook

On the hourly chart, AVGO is trading below the MA-20 at $363.39 and MA-50 at $362.67, with the daily chart showing the price under the MA-200 at $370.15. Immediate resistance is located at the Ichimoku Kijun level of $364.86. Among momentum indicators, MACD registers strong buy momentum, while ADX is neutral, suggesting a lack of trend strength. RSI remains subdued at 45.9, CCI signals sell, and both Stochastic RSI and Bull/Bear Power reflect oversold and seller-dominant conditions. The Awesome Oscillator is neutral and does not confirm a clear direction.

Downside risk persists as consolidation narrows potential upside

Looking ahead to the next two to three trading days, AVGO is expected to consolidate within a range of $339.78 to $363.34, according to the current volatility band. The likelihood of a rebound is low, with downward movement seen as the higher-probability scenario. A bullish shift would require a decisive break above resistance at $364.86, while a break below $339.78 could prompt further downside pressure.

Anton Kharitonov, expert at Traders Union, sees Broadcom’s weak revenue guidance as a clear negative catalyst. Price action is weak and technical momentum does not signal a convincing trend reversal. With sentiment under pressure and key resistance levels overhead, he remains highly cautious. "Unless we see a decisive reclaim of $364.86, I view the downside as the dominant scenario for AVGO in the near term."

Earlier, analysts noted that Broadcom's strong AI-driven revenue growth was drawing interest even as technical signals pointed to unresolved resistance and mixed momentum. Current price action confirms ongoing seller dominance, making a decisive move above $364.86 the key level to watch for any potential shift in the prevailing downtrend.

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.