Broadcom Stock Tumbles on Light Revenue Outlook: Monitor Price Levels | ORBITAL AFFAIRS

Shares of Broadcom (AVGO) fell nearly 7% in extended trading on Thursday after the chipmaker released its fiscal third-quarter results. While the results exceeded expectations, the company issued light revenue guidance for the current quarter. This news has caused concern among investors, leading to a potential breakdown in the stock’s chart pattern.

Broadcom has experienced significant growth over the past year, with its stock surging around 75%. This growth can be attributed to the increasing demand for its custom chips and networking parts used in AI applications and infrastructure. However, softer spending in its broadband business and other divisions have partially offset this strength.

The stock has been trading within a symmetrical triangle pattern since mid-June, with declining volume. Prior to the quarterly report, the price tested the lower trendline of the pattern, indicating a potential breakdown. Following the weaker-than-expected sales outlook, Broadcom shares fell 6.7% to $142.53 in after-hours trading on Thursday.

Investors should pay attention to several key price levels on Broadcom’s chart. The first level to watch is around $141, where the shares could find support near a horizontal line connecting a range of consolidation between March and June. If the stock moves below this level, a sell-off down to the $120 level is possible. This area could be seen as a buying opportunity due to its proximity to swing lows formed in March and April.

The next important level is $104, where the shares may encounter support near the low of an early January retracement. Finally, a deeper correction could bring the stock down to the $91 region. This level would likely attract bargain hunters as it aligns with a trendline connecting peaks and troughs from May to December last year. Interestingly, this location also corresponds to a measured move downside target calculated from the symmetrical triangle pattern.

It is important to note that the information provided in this article is for informational purposes only and should not be considered as financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.

In conclusion, Broadcom shares have experienced a significant decline following the release of its fiscal third-quarter results. The stock’s chart pattern suggests a potential breakdown, and investors should monitor key price levels for potential support. However, it is crucial to conduct thorough research and seek professional advice before making any investment decisions.

News Desk

Explore more

The Emotional Impact of Sayo’s Brief Appearance in Demon Slayer

What Happened to Sayo in Demon Slayer? In Demon Slayer (Kimetsu no Yaiba) even the minor characters touch the hearts of viewers so much...

Google’s AI Investments Drive Impressive Earnings Growth and Future Innovation

The recent surge in Alphabet's stock price following the release of its third-quarter earnings report highlights a pivotal moment for the tech giant, particularly...

Maxie Jones: A Journey Through Trials and Triumphs on General Hospital

Maxie Jones has played by Kirsten Storms. He is an important character on the ABC soap General Hospital. Fans have followed her story for...

AMD Faces Post-Earnings Sell-Off: Key Support Levels and Future Price Targets...

The recent performance of Advanced Micro Devices (AMD) has stirred both concern and interest among investors, particularly following the company's disappointing third-quarter earnings report....

Cadence Design Systems Soars on AI Demand and Strong Earnings

Cadence Design Systems has made waves in the financial markets recently, emerging as a standout performer among its peers on the S&P 500. Following...

Alphabet’s Strong Q3 Boosted by Cloud Growth and AI Demand

In a significant display of financial prowess, Alphabet, the parent company of Google, has recently unveiled its third-quarter results, surpassing analyst expectations and showcasing...
The Impact of Height on Success: Michael Corleone Blanco's Journey

The Impact of Height on Success: Michael Corleone Blanco’s Journey

Many wonder how physical traits shape a person’s life path. Michael Corleone Blanco, known for his family ties, has sparked curiosity about his height...

Market Pulse: Mixed Reactions as Earnings Reports Shape Investor Sentiment

Amid a landscape of fluctuating market dynamics, the performance of major U.S. stock indexes reveals the ongoing challenges and opportunities within various sectors. As...