Watch These Broadcom Price Levels As Stock Soars On Strong Ai Sales Growth

Broadcom (AVGO) shares surged successful extended trading Thursday aft nan chipmaker reported better-than-expected net and issued a rosy outlook amid robust AI-driven income growth.

The institution said its fiscal 2024 AI revenue much than tripled, driven by its AI XPUs and Ethernet networking portfolio. After-hours gains accelerated aft CEO Hock Tan told analysts connected nan company’s earnings call that he anticipates important AI opportunities complete nan adjacent 3 years, adding that he sees accelerators and networking income successful fiscal 2027 ranging betwixt $60 cardinal and $90 billion.

Through Thursday's close, Broadcom shares had gained 64% since nan commencement of nan year. The banal roseate 14% to astir $206 successful extended trading.

Below, we break down nan technicals connected Broadcom’s weekly chart and place cardinal value levels worthy watching retired for.

Ascending Triangle Breakout

Broadcom shares person consolidated wrong an ascending triangle since mid June, a floor plan shape that signals a continuation of nan stock’s longer-term uptrend.

Indeed, nan value sits poised to break retired supra nan formation’s apical trendline connected Friday, mounting nan shape for further upside.

Moreover, nan relative spot scale (RSI) gives a reference conscionable supra 50, confirming bullish momentum and indicating nan shares person ample room to trial higher prices arsenic they move into price discovery.

Let’s use technical analysis to forecast a imaginable upside price target and besides place 2 cardinal support levels that would apt pull buying liking during retracements.

Bars Pattern Upside Price Target

To forecast an upside target successful nan stock, investors tin usage nan bars shape tool, which analyzes anterior trends to thief foretell early directional moves.

When applying nan instrumentality to Broadcom's chart, we extract nan stock’s inclination higher from December 2023 to June this twelvemonth and reposition it from nan ascending triangle’s apical trendline. This projects a longer-term upside target of astir $315. 

We selected this anterior move arsenic it commenced pursuing a decisive earnings-driven jump supra a continuation shape connected nan floor plan successful December past year, akin value action to what looks apt aft nan company’s latest quarterly report. 

Key Support Levels to Watch During Pullbacks

During pullbacks, investors should initially watch really nan value reacts to nan $185 level. This location connected nan floor plan would apt pull buying liking adjacent nan ascending triangle’s apical trendline, which whitethorn flip from an area of anterior resistance into early support.

Selling beneath this level could spot Broadcom shares revisit little support astir $140, an area wherever investors whitethorn activity buying opportunities adjacent a horizontal line that connects a bid of comparable trading activity connected nan floor plan betwixt February and September.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.