Watch These Broadcom Price Levels as Stock Follows Nvidia Lower in Chip Stock Selloff | Global News Avenue

Broadcom(avgo) Stocks may remain on a wait for a 7% to a one-month low on Thursday in a wider range Chip stock sale As investors digest NVIDIA’s revenue ((NVDA) and President Trump’s Latest announcements on tariffs.

Market reaction to NVIDIA results suggests that while AI favorites earn more than street expectations ahead of schedule, given the Artificial Intelligence Expenditures and uncertainty about the potential impact of the Trump administration on tariffs and AI chip export routes.

Broadcom shares have lost 15% of their value since the beginning of the year to the end of Thursday, but have risen more than 50% in the past 12 months as demand for chips for AI surged, Bernstein analysts said in December, Bernstein analysts said Chipmakers may have “Nvidia moments”. ”

Below, we carefully studied Broadcom’s charts and used Technical Analysis Point out key price levels worth paying attention to.

Descending channel formation

Because a new one has been set up Highest history (ATH) In mid-December, Broadcom shares were merged Descending Channel. Recently, the top trendline sales from the model have accelerated at a lower price than the respected ones 50-day moving average (MA) Increase Trading volume.

and Relative Strength Index (RSI) The bearish momentum is confirmed by readings below 40, and the indicator is at a level that usually matches the local bottom of the stock.

Next, we determine three Support level If the stock continues to fall and critical overhead, it may be worth a look at whether the stock resumes its long-term movement.

Main support levels for viewing

The first lower level play time is about $185. The area currently located below the down channel may find support near the previous top trendline Ascending triangle On the chart and near 200 days MA.

A decisive closure below this price could put the stock down to $160, and the location could offer flooring in several locations groove The chart was formed on the charts from June and November last year.

Further sales may bring $140 to lower support. Such a decline may attract investors looking for investors who buy opportunities nearby Horizontal line From March to September, this connects a series of similar price points.

Key overhead for monitoring

If Broadcom shares restore its long term upgradeinvestors should pay attention to how prices cope with the highest trend line of the downward channel. The upper area of ​​the pattern is currently located around 50-day MA for about $230, but will drop over time.

Finally, investors can predict a more speculative upside target by using the Bars model tool. This technology absorbs Broadcom’s trend From late November to mid-December, repositioned from the downward trend line of the downward channel, the trend targets approximately $295. The analysis hypothesis continue Mobile may play a role in stocks.

Comments, opinions and analysis expressed by Investopedia are for informational purposes only. Read ours Warranty and liability disclaimer For more information.

As of the date of writing this article, the author does not own any of the above securities.