- 1 Broadcom price closed at $802.30 while witnessing a decrease of -1.19% during the last trading session.
- 2 Avgo traded above the 20,50,100 and 200-day EMAs.
- 3 The year to date return of AVGO is 42%.
Avgo price is currently stuck in a consolidation zone ranging between $840 and $788 after rising from the low of $610.50 level. Before the release of the quarter 2 report, Broadcom price was in a strong bullish trend due to its multi-billion dollar agreement with Apple. The release of the quarterly report did not have much effect on the price. After the bullish rally, the price entered into a consolidation zone.
If bears can break the recently formed support of $788, there is a high probability for the price to fall toward the $700 level. On the other hand, if the price can break and close above the resistance level of $840, there is a possibility for the price to fill the upper wick of the May 30 candle. This move caused a rise of roughly 9.57%. The new all-time high for Broadcom is at $921.78.
Wall Street analysts are favoring Broadcom as the next likely chip maker after Nvidia(NVDA) to benefit from the surge of demand for AI infrastructure. Broadcom expects Ai-related revenue to rise to approximately $7.5 Billion by the next fiscal year. If Avgo is able to hit those projections, then it would become the second largest firm in the semiconductor sector, trailing Nvidia and beating out rivals such as Intel (INTC).
Broadcom Quarter 2 Earning Report Released
Consensus estimated the earning per share to be $10.12 and the company reported EPS of $10.32, a surprise of $0.20(1.98%). Net revenue increased 7.8% year over year to $8.73 Billion, while consensus estimated it to be $8.70 Billion.
The year-over-year growth was driven by strength in networking and broadband. DA davidson, an investment banking firm, raised the broadcom price target to $897 from $698.
Will AVGO Price Fall to $700 Level?
Avgo price trades above 20,50,100 and 200-day EMAs indicating bullish momentum in the price. Chaikin money flow score is 0.08 indicating bullish strength in the market. The RSI trades in the overbought region indicating a chance of reversal or short-term pullback the price.
If there is a reversal, then the recent support needs to be shattered for the price to retrace toward $700 level. Avgo price has reached the upper band of bollinger suggesting a chance of a pullback.
Conclusion
The market structure and price action of Avgo price is still bullish but price has now entered into a consolidation zone. There isn’t much confirmation regarding the direction of the price.
The technical indicators such as RSI and bollinger bands are favouring the chance of a short term pullback which concludes to price breaking the recent support of $788. The earnings report also turned out to be positive for the company but has not affected the price in a significant way.
Technical levels
Major support: $788 and $700
Major resistance: $921.78 and $840
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.