Three Rising Valleys Pattern on Broadcom Suggests the Stock Could Rally
The semiconductor sector has been hit particularly hard in the recent market decline, but Broadcom (Nasdaq: AVGO) has held up better than most. The stock did gap sharply lower back in July, but has been rallying since then.
The daily chart shows a particular bullish formation has formed in the last three months and that is a Three Rising Valley pattern. We see the three blue circles from the lows in late October, early December, and early January.
In two of the three instances where a valley was formed, we see that the stock was in oversold territory based on the stochastic readings. The recent oversold level just created a bullish crossover and that has been a pretty good sign for the stock in recent months.
Something could be helping Broadcom stand out above other chip companies are its fundamentals. The company has seen earnings grow at an annual rate of 36% per year over the last three years and they grew by 27% in the most recent quarterly report.
Sales have been growing as well. The annual rate of growth in the last three years is 47%, but they only grew by 12% in the most recent quarter.
The company’s management efficiency measures are particularly strong with a return on equity of 40% and a profit margin of 47.8%. Both of those measurements are well above average.
AVGO's Stochastic Oscillator entering overbought zone
The Stochastic Oscillator for AVGO moved into overbought territory on March 09, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bearish Trend Analysis
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 March 09, 2026. 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 Aroon Indicator for AVGO entered a downward trend on February 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AVGO's RSI Oscillator exited the oversold zone, of 11 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 09, 2026. You may want to consider a long position or call options on AVGO as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AVGO just turned positive on March 06, 2026. Looking at past instances where AVGO's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
AVGO moved above its 50-day moving average on March 09, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 82, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (19.608) is normal, around the industry mean (9.175). P/E Ratio (64.421) is within average values for comparable stocks, (147.135). Projected Growth (PEG Ratio) (0.750) is also within normal values, averaging (1.439). Dividend Yield (0.007) settles around the average of (0.021) among similar stocks. P/S Ratio (23.529) is also within normal values, averaging (29.704).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
a manufacturer of digital and analog semiconductor products
Industry Semiconductors
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