An Interesting Development on Broadcom’s (AVGO) Chart
Semiconductor companies have been getting hit pretty hard over the last few months and the iShares PHLX Semiconductor ETF (Nasdaq: SOXX) is down almost 17% since the beginning of September. One of the few chip stocks that has managed to gain ground in the last few months is Broadcom (Nasdaq: AVGO). Since the beginning of September, the stock is up +16.9%.
Over the last few days, the daily bars have been very interesting. The action last Wednesday saw the stock gap higher, move sharply higher throughout the day and then slip back down a little. This is called a long tail pattern.
On Thursday the stock moved higher again, but it was both down from its open price and above its open price at different points during the day. On Friday and Monday, the stock opened down, moved significantly higher during the day, but slipped back down to close near the open price.
It really catches your attention to see such an odd formation, and I would normally say this was a bearish sign for the stock. However, in this case, I think it could be a bullish sign for the stock because I think the reason for the long tails in three of the last four days is that the stock has been dragged down due to weakness in the overall market. Even with the odd looking daily bars, the stock is up 0.33% while the SOXX is down 2.9% and the S&P is down 3.97%.
To me, this suggests that if we get a day where the market jumps higher, Broadcom is set to move even more dramatically than the market. The company’s fundamentals are pretty solid and that will only help the stock.
Momentum Indicator for AVGO turns positive, indicating new upward trend
AVGO saw its Momentum Indicator move above the 0 level on June 23, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 372 cases where AVGO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AVGO moved out of overbought territory on July 01, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 65 similar instances where the indicator moved out of overbought territory. In of the 65 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for AVGO turned negative on July 08, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AVGO broke above its upper Bollinger Band on June 26, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AVGO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (18.622) is normal, around the industry mean (9.434). P/E Ratio (100.511) is within average values for comparable stocks, (63.871). Projected Growth (PEG Ratio) (1.292) is also within normal values, averaging (2.352). Dividend Yield (0.008) settles around the average of (0.020) among similar stocks. P/S Ratio (23.310) is also within normal values, averaging (36.027).
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General Information
a manufacturer of digital and analog semiconductor products
Industry Semiconductors
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