Broadcom (AVGO) shares fell nearly 4% on Monday, joining a sell-off in other leading chipmakers, as investors booked profits in some of this year’s best performing stocks that have ridden Wall Street's 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) wave amid insatiable enterprise demand fo♊r hardware that powers the technology.

Below, we take a closer look at the Broadcom chart and identify four key lev🔥els to watch out for ami💃d further weakness in the chipmaker’s share price.

Reversal From Record High Shifts Momentum

Broadcom shares broke above an 澳洲幸运5官方开奖结果体彩网:ascending triangle earlier this month, with the price initially moving sharply higher, driven by the chipmaker’s second quarter 澳洲幸运5官方开奖结果体彩网:revenue beat and the announcement of a 澳洲幸运5官方开奖结果体彩网:10-for-1 stock split.

However, momentum appeared to shift last Tuesday after the stock climbed to a new 澳洲幸运5官方开奖结果体彩网:record high but staged an intraday reversal to close lower for the day. Since then, the stock has formed three consecutive red bars on above-average volume, indicatinඣg conviction be⭕hind the selling from larger market participants.

Key Retracement Levels to Watch

Firstly, it’s worth keeping an eye on the $1,410 level, an area that may find buying interest from the 50-day 澳洲幸运5官方开奖结果体彩网:moving average (MA) and a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting several price peaks♒ over the past four months.

Secondly, the shares may encounter support around $1,225, a𒀰n area on the chart near a trendline linking a series of price action between February and May.

A steeper decline could see the stock revisit the $1,150 level where the price would likely attract buyers near the prominent December 2023 澳洲幸运5官方开奖结果体彩网:swing high that curr𓆉ently aligns with the rising 200-day MA.

Finally, a significantly deeper 澳洲幸运5官方开奖结果体彩网:retracement may see the shares fall to the psychological $1,000 level, currently 37% below Monday’s closing price of $1,592.21. This area also finds support from the November 2023 澳洲幸运5官方开奖结果体彩网:swing high.

For further clues that buyers could be moving back into the stock, investors should watch for bullish price patterns, such as a 澳洲幸运5官方开奖结果体彩网:hammer candlestick of a 澳洲幸运5官方开奖结果体彩网:piercing pattern, at these key price levels.

Broadcom shares fell ꦬ3.7% on Monday and have lost 14% of their 🏅value since hitting their all-time intraday high last Tuesday.

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As of the date this article was written, the author does not own any of the above securities.