Watch these Broadcom price levels as shares soar on strong AI sales growth

• Broadcom shares rose in extended trading Thursday after the chipmaker reported better-than-expected earnings and issued an upbeat outlook amid strong sales growth fueled by artificial intelligence.

• The stock is poised to break out of an ascending triangle on Friday, setting the stage for a continuation of the stock’s long-term uptrend.

• The bar pattern tool, which extracts the stock’s uptrend from December 2023 to June this year and repositions it from the upper trend line of the ascending triangle, forecasts an upside target of around $315.

• Investors should keep an eye on key support levels on the Broadcom chart during pullbacks near $185 and $140.

Broadcom (AVGO) shares rose in extended trading Thursday after the chip maker reported better-than-expected earnings and issued an optimistic outlook amid strong AI-driven sales growth.

The company said its AI for fiscal 2024 revenue more than tripled, driven by its Ethernet and XPU AI networking portfolio. After-hours earnings accelerated after CEO Hock Tan told analysts on company show earnings call which anticipates significant AI opportunities in the next three years, adding that it expects accelerator and network sales in fiscal 2027 to range between $60 billion and $90 billion.

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

Next, we break down the techniques at Broadcom weekly chart and identify key price levels worth paying attention to.

Broadcom shares have consolidated within a ascending triangle since mid-June, a chart pattern that signals a continuation of the stock’s long-term bullish trend.

In fact, the price is about to surpass the high of the formation. trend line on Friday, setting the stage for further gains.

Furthermore, the relative strength index (RSI) gives a reading just above 50, confirming the bullish momentum and indicating that the stock has ample room to test higher prices as it heads towards price discovery.

let’s apply technical analysis to forecast a possible advantage target price and also identify two keys support levels that would likely attract buying interest during pullbacks.

To forecast a bullish target on the stock, investors can use the bar pattern tool, which analyzes the past stocks. tendencies to help predict future directional movements.

By applying the tool to Broadcom’s chart, we extract the stock’s uptrend from December 2023 to June of this year and reposition it from the upper trend line of the ascending triangle. This projects a longer-term bullish target of around $315.

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