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2026-06-04 13:18:52

AVGO Stock Forecast: Broadcom Selloff Tests Support After Sharp Rally

Broadcom is pulling back from record highs after a fast rally left the stock exposed to profit-taking. The selloff has pushed AVGO toward key support near $410, while analysts remain split between short-term risk and an overdone reversal. AVGO Stock Forecast: Broadcom Tests Key Support Zone After Losing Momentum Broadcom (AVGO) is pulling back after a strong rally pushed the stock to new highs near $495. According to SmartReversals, the recent move has returned the stock inside its Bollinger Band range while also breaking below the 20-day moving average, a combination that can signal weakening short-term momentum. Broadcom Tests Volume Shelf Support After Bollinger Band Reversal. Source: SmartReversals on X The chart shows AVGO climbing sharply from below $300 in April to nearly $500 in early June. However, the latest candles indicate profit-taking after the stock reached an overextended level. The pullback has also pushed the Relative Strength Index (RSI) down from overbought territory, though it remains elevated near 73. SmartReversals highlighted the volume shelf around the $410 area as the most important level to watch. Volume shelves represent price zones where significant trading activity previously occurred, often creating support when stocks retrace. The chart's volume profile shows a concentration of trading activity near $410 to $430. If buyers step in around that area, AVGO could find support and stabilize following the recent decline. However, the loss of the 20-day moving average adds risk to the setup. A failure to hold the volume shelf could expose the stock to deeper support zones near $390 and potentially lower levels highlighted by previous consolidation areas. SmartReversals noted that the setup remains highly risky despite the potential support zone. The analyst suggested that risk management becomes critical if AVGO continues moving toward the $400 level. For now, the $410 area remains the key technical level. A successful defense of that zone could help Broadcom regain momentum, while a breakdown may signal a larger correction after the stock's rapid advance. AVGO Stock Forecast: Broadcom Selloff Seen as Overdone After Sector Pullback Broadcom (AVGO) led a sharp semiconductor pullback, dragging memory and optical networking stocks lower after several days of strong gains across the sector. According to Dr. Stoxx, AVGO was the ”prime culprit” behind the decline, with the stock retracing all the way back toward its May 19 lows. The analyst argued that the selloff appears excessive following three to four consecutive strong sessions for many semiconductor names. Broadcom Pulls Back Toward Key Trend Support. Source: Dr. Stoxx on X The charts show Broadcom pulling back from recent highs near $495 after a steep rally. Despite the decline, the stock remains within a broader rising trend channel on both the daily and hourly timeframes. Several support levels are visible between approximately $406 and $425. The daily chart highlights previous consolidation zones near $424.7 and $406.7, areas that could attract buyers if selling pressure continues. On the hourly chart, momentum indicators have cooled significantly following the recent advance. The pullback comes after AVGO gained rapidly in a short period, increasing the likelihood of profit-taking and short-term consolidation. Dr. Stoxx suggested the move may be overdone relative to the broader trend. While Broadcom has pressured related semiconductor groups, the stock continues to trade above major longer-term support levels and remains inside its broader upward channel. Traders will now watch whether AVGO can stabilize near support and resume its uptrend or whether the recent weakness develops into a deeper correction across the semiconductor sector.

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