Broadcom (AVGO) shares surged in extended trading Thursday after the 澳洲幸运5官方开奖结果体彩网:chipmaker reported better-than-expected earnings and issued a rosy outlook amid robust AI-driven sales growth.

The company said its fiscal 2024 AI revenue more than tripled, driven by its AI XPUs and Ethernet networking portfolio. After-hours gains accelerated after CEO Hock Tan told analysts on the company’s 澳洲幸运5官方开奖结果体彩网:earnings call that he anticipates significant AI opportunities over the next three years, adding that he sees accelerators and networking sales in fiscal 2027 ranging between $60 billion and $90 billion.

Through Thursday's close, Broadcom shares had gained 64% since the start of the year. The stock rose 14% to around $206 in extended trading.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Broadcom’s 澳洲幸运5官方开奖结果体彩网:weekly chart and ident🐠ify key price levels worth watching out for.

Ascending Triangle Breakout

Broadcom shares have consolidated within an 澳洲幸运5官方开奖结果体彩网:ascending triangle since mid June, a chart pattern that signals a 澳洲幸运5官方开奖结果体彩网:continuation of the stock’s longer-term uptrend.

Indeed, the price sits poised to break out above the formation’s top 澳洲幸运5官方开奖结果体彩网:trendline on Friday, setting the st💝age for further upside.

Moreover, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) gives a reading just above 50, confirming bullish momentum and indicating the shares have ample room to test higher prices as they move into 澳洲幸运5官方开奖结果体彩网:price discovery.

Let’s apply 澳洲幸运5官方开奖结果体彩网:technical analysis to forecast a potential upside 澳洲幸运5官方开奖结果体彩网:price target and also identify two key 澳洲幸运5官方开奖结果体彩网:support levels ⛦that would likely attract buying interest during retracements.

Bars Pattern Upside Price Target

To forecast an upside target in the stock, investors can use the bars pattern tool, which analyzes prior trends to help predict future directional moves.

When applying the tool to Broadcom's chart, we extract the stock’s trend higher from December 2023 to June this year and reposition it from the ascending triangle’s top trendline. This projects a longer-term upside target of around $315. 

We selected this prior move as it commenced following a decisive earnings-driven jump above a continuation pattern on the chart in D🦩ecember last year, similar price action to what looks likely after the company’s latest quarterly report. 

Key Support Levels to Watch During Pullbacks

During 澳洲幸运5官方开奖结果体彩网:pullbacks, investors should initially watch how the price reacts to the $185 level. This location on the chart would likely attract buying interest near the ascending triangle’s top trendline, which may flip from an area of prior 澳洲幸运5官方开奖结果体彩网:resistance into future support.

Selling below this level could see Broadcom shares revisit lower support around $140, an area where investors may seek buying opportunities near a 澳洲幸运5官方开奖结果体彩网:horizontal line that connects a s🐼eri🐠es of comparable trading activity on the chart between February and September.

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