Broadcom stock weekly forecast: Support at $335.81 comes into focus following sharp pullback

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Broadcom falls 3.57% this week

Highlights

Shares of Broadcom fell 3.57% over the past week and now trade below all major daily moving averages.
Price action shows strong downside momentum, but oversold indicators could limit immediate further declines.
Over the next five trading days, shares are expected to range between $309.94 and $363.16 with 79% probability of a decrease.

Robust Q3 AI revenue growth tempers caution from sector warnings

Broadcom reported a 221% year-over-year surge in Q3 AI semiconductor revenue to $16.7 billion, according to Yahoo Finance and 24/7 Wall St., with CEO Hock Tan maintaining bullish long-term guidance and highlighting strong demand from hyperscalers like Google, OpenAI, and Meta. Management addressed some near-term infrastructure constraints but reaffirmed revenue guidance, ongoing share buybacks, and its dividend policy, as noted by Yahoo Finance. Recent warnings from leaders in the AI sector, including Anthropic and OpenAI, have added caution to the outlook for AVGO in the days ahead.

Support and oversold signals build as downside momentum accelerates

On the daily chart, the structure is defined by price action below the 20-day moving average at $360.36 and strong downside momentum. RSI is approaching oversold at 32.11, while CCI and Stoch RSI have already moved into oversold territory, which could limit further immediate declines. Volatility over the past week was significant at 9.13%, with momentum reflecting a sharp move lower without a sustained trend. Key levels in play are support at $335.81 and resistance at $360.36, with the Ichimoku Kijun at $381.33 acting as another resistance.

Downside bias dominates outlook as range boundaries guide next week

Over the next five trading days, Broadcom shares are expected to trade between $309.94 and $363.16. There is a 79% probability of a decrease and a 21% probability of an increase, based on the underlying signals. The base case is continued trading between support at $335.81 and resistance at $360.36. A break above $360.36 would open room for a bullish recovery toward the upper end of the range, while a move below $335.81 could see the decline deepen toward $309.94.

Jainam Mehta, market strategist, notes that shares of Broadcom ended the week near $349, after a 4% pullback. He sees the oversold readings on several daily indicators as a signal that selling may soon exhaust itself, potentially opening the door to stabilization. Strong Q3 AI semiconductor revenue growth and bullish guidance from management remain supportive, though cautious sector commentary is tempering near-term sentiment. "With price action now below the 20-day moving average and RSI approaching oversold at 32.11, I am looking for a pause in downside momentum — but a decisive move above $360.36 is needed to confirm a recovery setup this week."

Earlier, analysts noted that Broadcom's ongoing seller dominance was pressuring the stock and that technical resistance limited the rebound outlook. The current setup adds a focus on oversold conditions and expanding volatility, with the upcoming week hinging on whether shares stabilize above support at $335.81 or risk a deeper move toward $309.94.

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

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