Broadcom Stock Slumps Amid Momentum Shift—Key Price Levels to Watch

Core Viewpoint - Broadcom shares experienced a nearly 4% decline as part of a broader sell-off in leading chipmakers, driven by profit-taking from investors capitalizing on the strong performance of AI-related stocks this year [1][2]. Group 1: Stock Performance and Market Sentiment - The stock reached a record high earlier in the month but faced an intraday reversal, indicating a shift in momentum [3]. - Since the record high, Broadcom shares have formed three consecutive red bars on above-average volume, suggesting strong selling pressure from larger market participants [3][5]. - The shares have lost 14% of their value since hitting their all-time intraday high last Tuesday [5]. Group 2: Key Price Levels to Monitor - Key retracement levels to watch include $1,410, which may attract buying interest due to the 50-day moving average and previous price peaks [4]. - Support is expected around $1,225, linked to a trendline from earlier price action [4]. - A further decline could see the stock revisit $1,150, where buying interest may emerge near the December 2023 swing high and the rising 200-day moving average [4]. - The psychological level of $1,000 is significant, representing a 37% drop from Monday's closing price of $1,592.21, and also aligns with support from the November 2023 swing high [4]. Group 3: Potential Buying Signals - Investors should look for bullish price patterns, such as a hammer candlestick or a piercing pattern, at the identified key price levels to gauge potential buying interest [5].