Stock Of The Day: Where Will The Broadcom Selloff End?

Core Viewpoint - Broadcom Inc. is experiencing a consolidation phase after a significant drop in share price, which fell nearly 12% following the earnings report, approaching a support level around $330 [1][3]. Group 1: Stock Performance - The recent selloff in Broadcom shares may halt at the identified support level, potentially leading to a rebound [1]. - The stock is currently in a downtrend due to sellers undercutting each other to attract buyers, resulting in insufficient demand to absorb the available supply [2]. Group 2: Support Level Dynamics - Support is characterized as a price level where there is substantial buying interest, which can prevent further declines in stock price [1][4]. - Remorseful sellers, who regret selling at lower prices, may contribute to the formation of support as they place buy orders when the stock returns to previous support levels [4][5]. - Stocks often rally after reaching support due to impatient buyers who fear missing out on potential price increases, which can lead to an uptrend [6][8].