Broadcom: Should I stay or should I go now? Go and Sell/Short..

Technical Analysis of Broadcom Inc. (Ticker on Nasdaq: AVGO)

Broadcom (AVGO), which at the time of writing on Monday 08 July 2024 is traded for around USD 1,731.00, has had a very strong rise in recent years, but now there may be a correction soon for this share.

The share has increased nearly tenfold in the past three years from 2021 to 2024, and now the share is facing significant technical resistance around the current price level, and up towards the upper trend line in this long-term upward trend.

There is also a recent 'gap' up which, according to technical analysis theory, should be 'covered' and this indicates that a correction may come in the share within a short time.

The share is heavily overbought in the short and medium term, and thus now faces considerable technical resistance around the current price level.

The overall technical picture for Broadcom (ticker on Nasdaq: AVGO) thus signals that the stock is probably facing a correction and initially and in the very short term down to around USD 1,500 (and close the gap), but preferably also down to test the support level at the 200-day moving average (down towards USD 1,220 - 1,300).

There may well be a test of the support level down towards the lower trend line in the long-term rising trend also during the next 3-6 months, which in that case will mean a decline down to around USD 940.00 - 1,000.00.

Yes, the overall technical picture today for Broadcom Inc. (AVG) indicates a short-term correction down to around USD 1,400 - 1,450 and in the medium term perhaps a correction down to around USD 940.00 - 1,000.00.

Please don't shoot the messenger. :-)