Broadcom stock downgraded from Strong Buy Candidate to Hold/Accumulate after Thursday trading session

The Broadcom stock price fell by -0.440% on the last day (Thursday, 5th Jun 2025) from $261.08 to $259.93. During the last trading day the stock fluctuated 2.25% from a day low at $259.06 to a day high of $264.89. The price has risen in 8 of the last 10 days and is up by 13.15% over the past 2 weeks. Volume has increased on the last day by 9 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 40 million shares were bought and sold for approximately $10.43 billion.

On Apr 22, 2025, it was reported that Barclays gave AVGO a "Overweight" grade with a "hold" action.

The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $262.23 will firstly indicate a stronger rate of rising.Given the current short-term trend, the stock is expected to rise 38.24% during the next 3 months and, with a 90% probability hold a price between $269.07 and $362.50 at the end of this 3-month period.

There are mixed signals in the stock today. A sell signal was issued from a pivot top point on Wednesday, June 04, 2025, and so far it has fallen -0.440%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely. The Broadcom stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $250.01 and $214.91. A breakdown below any of these levels will issue sell signals.

Broadcom finds support from accumulated volume at $256.85 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $5.83 between high and low, or 2.25%. For the last week, the stock has had daily average volatility of 3.00%.

The Broadcom stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stock may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Broadcom holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Hold/Accumulate candidate.