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- 1 Broadcom price closed at $812.73 while witnessing an increase of +11.52% during the last intraday session.
- 2 Apple announced a multi-billion dollar agreement with Broadcom.
- 3 The year to date return of Broadcom is 43.85%.
2023 has turned out to be one of the best years for Broadcom price. Rising from the low of $550.79 and forming a higher lows, Broadcom has been in an uptrend since the start of 2023.
Recently, Avgo price entered into the consolidation zone as it was not able to close above $644. The consolidation zone ranged between $610.55 and $644.
The price stayed in the consolidation zone from the start of march to mid of may. Avgo price gained enough bullish momentum to shatter the resistance level of $644. The stock price then faced rejection from $700 which pushed the price down to $678.
Bulls were not ready for any further downfall and Avgo price regained bullish momentum to rise above $700. Avgo price created all-time at $814.98 on 26 May.
Apple announced a multibillion-dollar deal with Broadcom to develop 5G radio frequency components in the United States. The deal is part of Apple’s 2021 commitment to invest $430 Billion in the United States economy. Apple would now be using chips made in the United States. Broadcom will be providing film bulk acoustic resonator (FBAR) chips to Apple. One-fifth of Broadcom’s revenue came from Apple over the last two fiscal years.
Earning Report Release of Broadcom INC.
Consensus has estimated revenue of $8.703 Billion for quarter 2 of 2023. The revenue generated in the first quarter was $8.91 Billion dollar with a net income of $3.77 Billion. The earnings per share (EPS) estimates $10.12 for the second quarter.
From 2021, Broadcom has always outperformed the consensus estimates of revenue as well as EPS. The chipmaker company’s financial health is very strong and stable. There is a higher probability that Broadcom will beat the estimates for Quarter 2.
Will Avgo Price Lose Bullish Momentum After Release of Earning Report?
Avgo price is in strong bullish momentum and is trading above the 20,50,100 and 200-Day EMAs. The Chaikin money flow score is 0.40 indicating strength in the market. RSI trades at 86.57 inhabiting the overbought zone. There are no signs of even a short term pullback in the price. Even the lower time frames are highly bullish.
Investors have a positive outlook for the upcoming earning report. Broadcom’s deal with Apple ignited the bullish momentum in the price and the positive outlook of the earnings report is fueling it.
Conclusion
The market structure and price action for Broadcom is highly bullish but traders should be cautious as earnings report can cause a correction in the price. Even though the earnings report might come positive, sometimes price can move in the downward direction before moving further upwards.
Technical levels
Major support: $700 and $678
Major resistance: $850 and $900
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
