why is AVGO stock dropping currently

The recent decline of 0.49% in Broadcom's (AVGO) stock price, following its peak at $261.57 on June 2, can be attributed to several factors:

1. Earnings Report: The anticipation of Broadcom's fiscal Q2 earnings report, scheduled for release after the market closes on June 5, is causing some volatility as investors adjust their positions. This is a common phenomenon as investors balance their expectations with the potential outcomes of earnings releases.
2. Technical Analysis: From a technical standpoint, the stock's recent peak coincides with a potential reversal point. The Relative Strength Index (RSI) has reached 80.72, indicating that the stock may be overbought and due for a correction. This could be prompting some investors to take profits or reduce their exposure, contributing to the downward pressure on the stock price.

In summary, the drop in Broadcom's stock price is likely a combination of factors including anticipation of earnings report and technical adjustments by investors.