Broadcom (AVGO) shares might stay on watchlists after falling 7% to a one-month low Thursday amid a broader chip stock selloff as buyers digested earnings from Nvidia (NVDA) and President Trump’s latest announcement on tariffs.

The market’s response to Nvidia’s outcomes means that whereas the AI favourite’s earnings got here in forward of Avenue expectations, buyers might have been on the lookout for extra, given mounting considerations over AI spending and uncertainty concerning the potential affect of the Trump administration’s insurance policies referring to tariffs and AI chip export curbs.

Broadcom shares have misplaced about 15% of their worth for the reason that begin of the yr by means of Thursday’s shut, however have gained greater than 50% over the previous 12 months as demand for its chips to help AI surged, with Bernstein analysts suggesting in December that the chipmaker could be having its “Nvidia moment.”

Beneath, we take a more in-depth take a look at Broadcom’s chart and use technical analysis to level out key worth ranges value watching out for.

Descending Channel Takes Form

Since setting a brand new all-time high (ATH) in mid-December, Broadcom shares have consolidated inside a descending channel. Extra lately, promoting from the sample’s high trendline has accelerated, with the value falling under the revered 50-day moving average (MA) on growing trading volume.

Whereas the relative strength index (RSI) confirms bearish momentum with a studying under 40, the indicator sits at a stage that usually coincides with native bottoms within the inventory.

Beneath, we determine three support levels that may very well be value watching if the shares proceed to fall and key overhead areas to watch if the inventory resumes its longer-term transfer increased.

Main Assist Ranges to Watch

The primary decrease stage in play sits round $185. This space, presently positioned slightly below the descending channel, might discover help close to the highest trendline of a previous ascending triangle on the chart and the close by 200-day MA.

A decisive shut under this worth might see the shares decline to the $160 stage, a location that will present a ground close to a number of troughs that shaped on the chart in June and November final yr.

Additional promoting might deliver decrease help round $140 into play. Such a drop might entice buyers on the lookout for shopping for alternatives close to a horizontal line that connects a spread of comparable worth factors on the chart from March by means of to September.

Key Overhead Areas to Monitor

If Broadcom shares resume their longer-term uptrend, buyers ought to watch how the value responds to the descending channel’s high trendline. The higher space of the sample presently sits at about $230 close to the 50-day MA, however will transfer decrease over time.

Lastly, buyers might forecast a extra speculative upside goal by utilizing the bars sample device. This system works by taking Broadcom’s trending transfer increased from late November to mid-December and repositioning it from the descending channel’s decrease trendline, which initiatives a goal of round $295. This evaluation assumes {that a} continuation transfer might play out within the inventory.

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As of the date this text was written, the creator doesn’t personal any of the above securities.