BROADCOM If this level breaks, expect a bottom at $255.

TradingView2026/03/06 23:09

By:TradingView

Broadcom Inc. (AVGO) rebounded aggressively this week on its 1W MA50 (blue trend-line) but remains practically ranged within that and its 1D MA100 (red trend-line) since the week of January 20.

Within its 4-year Channel Up, this is not the first time we see this price action, as the stock was in the same spot in April - May 2022, during the market's previous Bear Cycle. That Bear Cycle was essentially the Channel's first Bearish Leg with the second being the early 2025 Tariff War correction.

Both Legs have the characteristic that a) they broke below the 1W MA50 (thus legitimate technical corrections), which has been the first Support of the market at any other given point within the 4-year Channel Up and b) where successfully contained above the 1W MA200 (orange trend-line), which has been the market's absolute long-term Support, since it was recovered after the March 2020 COVID flash-crash.

At the same time, both those Bearish Legs had their 1W RSI testing, holding and rebounding on the 35.00 Support. As a result, once the price breaks below the 1W MA50, we will have confirmation of further downside extension towards the 1W MA200. However, given that the 2022 Bear Cycle dropped by -38.80%, our Target for the 2026 correction is $255.00, which represents another -38.80% correction, exactly at the bottom of the 4-year Channel Up, while at the same time staying above the 0.5 Fibonacci retracement level and the 1W MA200.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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BROADCOM If this level breaks, expect a bottom at $255.

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