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Broadcom Inc. logoAVGO▼
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Prediction
Price-up
BULLISH
Target
$240
Estimated
Model
ai robot icon
trdz-0120
Date
02/07/2025
UTC

Broadcom Inc. Price Analysis Powered by AI

Technical Analysis for Broadcom Inc. (AVGO)

Overview

We are analyzing the price movement of Broadcom Inc. (AVGO) based on the data provided up to February 7, 2025. The current price stands at $231.36. We will employ a range of technical indicators and chart patterns to assess the potential direction of AVGO's price and provide a recommendation.

Historical Price Trend Analysis

Over the past three months, AVGO's price has demonstrated significant volatility. Notably, there was a substantial price increase in mid-December 2024, where prices rose sharply from ~$180 to over $250 before entering a corrective phase.

  • Uptrend Identification: This rally primarily in December could be identified as an uptrend fueled potentially by positive news or earnings reports. However, the quick correction followed by a steep decline to a low of ~$202 in January shows an overreaction fading.

  • Current Trend: From late January, AVGO has exhibited a moderate uptrend recovering from a low of $202, with higher lows and oscillating upwards towards current levels.

Volume and Momentum Indicators

  • Volume Analysis: Volume dramatically spiked in mid-December, coinciding with the large price surge, indicating strong buying interest. Recently, volume has normalized, yet notable volume still supports the recent uptrend.

  • RSI (Relative Strength Index): The RSI values suggest that the stock was previously oversold below 30, and now trending towards neutral around 50, indicating that the current price may neither be overbought nor oversold at this moment.

  • MACD (Moving Average Convergence Divergence): Recently, the MACD line has crossed above the signal line, which is often interpreted as a bullish signal, supporting a short-term uptrend potential.

Key Support and Resistance Levels

  • Support Levels: Significant support is observed around the $215 range, which provided a base in early 2025 after the pullback from highs.

  • Resistance Levels: Current resistance is positioned near $240, where the price has faced challenges in breaking through on several attempts.

Moving Averages Analysis

  • DMA (Daily Moving Average): The 50-day simple moving average (SMA) is trending upwards and is below the current price, indicating a favorable short-term trend.

  • Crossover: The 20-day moving average has recently crossed above the 50-day moving average, often considered a bullish crossover pattern.

Candlestick Patterns

  • Recent candle analysis from the past few days suggests indecision, with multiple Doji-like patterns observed, where open and close values are quite close.

Prediction for Next 24 Hours

Given the technical indicators pointing towards a continuation of the current uptrend and the MACD crossover confirmation, a moderate increase in price can be expected if the momentum keeps. However, resistance at $240 remains a psychological barrier.

Conclusion

Given the indicators of bullish momentum combined with supportive volume and the technical setups, there’s a potential opportunity for a cautious "Buy".