Broadcom (AVGO) shares experienced a nearly 4% decline on Monday, in line with a broader sell-off seen in top chipmakers. This drop comes as investors decide to cash in profits on stocks that have seen significant gains this year thanks to the artificial intelligence trend on Wall Street.
The momentum for Broadcom stock began to shift last Tuesday after reaching a new all-time high, only to reverse course later in the day and close lower. Since then, the stock has seen three consecutive days of declines with above-average trading volume, suggesting strong selling pressure from major market players.
Investors should keep an eye on several key retracement levels for Broadcom stock, including $1,410, $1,225, $1,150, and the psychological level of $1,000. These levels may attract buyers looking to enter the stock at a lower price point.
Additionally, investors should watch for potential bullish price patterns, such as a hammer candlestick or piercing pattern, as indicators that buyers may be returning to the stock at these key price levels.
Overall, Broadcom shares have lost 14% of their value since reaching their all-time high last week. The current market conditions suggest a cautious approach for investors, with attention on potential support levels and signs of renewed buying interest.
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