Broadcom shares weekly forecast: Stalls below resistance with volatility elevated and RSI neutral

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Broadcom slips 2.73% this week

Highlights

Shares of Broadcom fell 2.7% over the past week and now trade below all major moving averages.
Price action is near the bottom of the recent weekly range with strong sell momentum indicated by technical signals.
Shares are projected to trade between $342.24 and $359.7 in the next five days, with a high probability of further decline unless price moves decisively above $353.59.

AI revenue surge and China review shape sentiment through major capital moves

Broadcom reported third-quarter fiscal 2026 revenue of $29.6 billion, up 85.5% year-over-year, with AI semiconductor revenue surging 221%, according to Seeking Alpha and Yahoo Finance. The company also wrapped up a $10.93 billion share repurchase program and launched a fixed-income exchange offer for $654 million of its notes due 2037, as noted by Yahoo Finance. Additionally, CNBC and Investing.com highlighted that Chinese authorities are reviewing the company's hardware in state-backed data centers, a move that could impact AVGO's exposure in the region ahead.

Sell momentum prevails this week as MACD and HMA confirm downside risk

On the daily chart, the setup shows a developing but unconfirmed move lower with volatility at 3.67%. MACD stands at -7.32 and signals strong sell momentum, aligning with a negative signal from the HMA, while RSI at 44.4 remains in a neutral zone. The nearest resistance is at $353.59 and the Ichimoku Kijun at $360.84 offers further overhead supply, with no nearby support evident, which leaves the stock vulnerable to further downside if selling persists.

Downside bias in the coming week as resistance caps range and bearish risk builds

Over the next five trading days, Broadcom shares are expected to trade between $342.24 and $359.7. There is a very low probability of an increase and a very high probability of a decrease during this period. The base case sees price remaining capped below $353.59 resistance. A bullish scenario would require a decisive move above $353.59 to signal upside potential. Conversely, a drop through $342.24 would indicate accelerated bearish momentum and open the way for deeper declines.

Jainam Mehta, market strategist, sees Broadcom shares under pressure this week after a 3% decline, with the stock vulnerable as no clear support is visible on the daily chart. He notes that while headline revenue growth is strong — thanks to a surge in AI semiconductor sales and an aggressive buyback, renewed regulatory scrutiny from China now clouds the outlook. Technicals point to strong sell momentum with MACD at -7.32 and key resistance at $353.59 capping upside. "This week, until we see a decisive move above $353.59, the path of least resistance for Broadcom shares remains to the downside."

Earlier, analysts noted that despite strong fundamental growth in Broadcom’s AI semiconductor segment and significant capital returns, the stock remained under pressure due to persistent bearish technical momentum. The latest price action and regulatory scrutiny reinforce downside risks, with traders closely monitoring whether Broadcom can hold above $342.24 to avoid a deeper decline in the near term.

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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