Broadcom (AVGO) shares fell sharply Friday, one day after the 澳洲幸运5官方开奖结果体彩网:chip giant delivered results and an outlook that were largely in line with Wall Street estimates.

The company's shares hit a fresh 澳洲幸运5官方开奖结果体彩网:record high this week ahead of its highly anticipated results, boosted by expectations of robust revenue growth driven by surging demand for chips that power 澳洲幸运5官方开奖结果体彩网:generative AI technology.

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 chip demand may accelerate during the second half of 2026 due to strong inference demand, referring to the process that uses a trained AI model to make predictions or decisions.

Still, Broadcom shares fell 5% to around $247 on Friday as the results and outlook may have missed the lofty expectations of investors, especially after the 澳洲幸运5官方开奖结果体彩网:blockbuste🅰r results delivered by rival ༒Nvidia last week. With tod💮ay's decline, Broadcom shares are up about 6% since the start of the year, slightly outpacing the performance of theꦫ S&P 500 index over that stretch.

Let’s break down the 澳洲幸运5官方开奖结果体彩网:technicals on Broadcom’s cꦆhart and identify key price levels worth watching out for.

Profit-Taking Ahead of Earnings

After plumbing a seven-month low in early April, Broadcom shares have trended sharply higher within a 澳洲幸运5官方开奖结果体彩网:rising wedge, with the price testing the pattern’s upper trendline in recent trading sessions. However, 澳洲幸运5官方开奖结果体彩网:profit-taking crept into the stock Thursday on the highest volume in around two months, whi🐻ch set the stage for today's selling.

It’s also worth pointing out that the 澳洲幸运5官方开奖结果体彩网:relative strength index recently climbed above 80, a reading that coincided with major tops in the 𝓡stock in December and June la𒀰st year.

Let’s identify key 澳洲幸运5官方开奖结果体彩网:support levels on Broadcom’s chart to watch amid the potential for further selling and 🅷also locate an important overhead area worth monitoring during recovery efforts in the stock.

Key Support Levels to Watch

Coming into Friday's session, the $250 level found a 澳洲幸运5官方开奖结果体彩网:confluence of support from the rising wedge pattern’s lower trendline and three notable peaks that formed on ▨the chart between Deℱcember and January.

With the stock closing below this level, shares could test the next lower level of support at $235. Investors may look for 澳洲幸运5官方开奖结果体彩网:dip buying opportunities in this region near the February 澳洲幸运5官方开奖结果体彩网:countertrend peak.

Further selling could trigger a steeper drop to the 澳洲幸运5官方开奖结果体彩网:psychological $200 area. The shares would likely encounter support in this location near the upward sloping 澳洲幸运5官方开奖结果体彩网:50-day moving average, which also closely aligns with the January 澳洲幸运5官方开奖结果体彩网:swing low and a period on consolidation in mid-March.

Important Overhead Area Worth Monitoring

During recovery efforts in Broadcom shares, investors should monitor the $265 area. Tactical traders who buy earnings-driven weakness may decide to 澳洲幸运5官方开奖结果体彩网:lock in profits near the stock’s 澳洲幸运5官方开奖结果体彩网:all-time high toward the rising wedge pattern’s peak.

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