Watch These Broadcom Price Levels as Stock Soars on Strong AI Sales Growth | Global News Avenue

Broadcom (AVGO) shares soared in extended trading Thursday Chipmaker reports The company posted better-than-expected earnings and an upbeat outlook amid strong sales growth driven by artificial intelligence.

The company said that in fiscal 2024, artificial intelligence income More than tripled, driven by AI XPU and Ethernet networking portfolio. Gains accelerated after hours after CEO Hock Tan revealed the company’s results to analysts Earnings Conference Call He expects significant AI opportunities to emerge over the next three years, adding that he expects accelerator and network sales to be between $60 billion and $90 billion in fiscal 2027.

As of Thursday’s close, Broadcom shares had risen 64% since the beginning of the year. The stock rose 14% to around $206 in after-hours trading.

Next, let’s break it down technical in Broadcom Weekly chart and identify key price levels worth watching.

Ascending Triangle Breakout

Broadcom stock has merged into ascending triangle Since mid-June, chart patterns have portended continue The long-term upward trend of stocks.

In fact, price is poised to break above the top of this pattern trend line Friday, setting the stage for further gains.

also, Relative Strength Index (RSI) The reading given is just above 50, confirming the bullish momentum and suggesting that the stock has plenty of room to test higher prices as it enters the market price discovery.

Let’s apply technical analysis Forecasting potential upside price target and identify two key support level This could attract buying interest during a pullback.

Bar Pattern Upside Price Target

To predict a stock’s upside target, investors can use the bar chart tool, which analyzes previous data trend Help predict future directional changes.

When applying this tool to Broadcom’s chart, we extracted the stock’s higher trend from December 2023 through June of this year and repositioned it from the top trendline of the ascending triangle. This projects a long-term upside target of approximately $315.

We chose this previous move because it followed a decisive earnings-driven jump above a continuation pattern on the chart in December, similar to the price action likely to follow the company’s latest quarterly report.

Key support levels to watch during pullbacks

period callbackinvestors should first focus on price reaction to the $185 level. This location on the chart may attract buying interest near the top trendline of the ascending triangle, which may reverse from the previous area resist to future support.

If it falls below that level, Broadcom stock could retest lower support around $140, and investors could look for buying opportunities near that area. horizontal line Link the chart to a comparable series of trading activity between February and September.

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As of the date of this writing, the author did not own any of the securities mentioned.