Broadcom's 15min chart signals RSI overbought, KDJ death cross

Broadcom's 15-minute chart has triggered both the Relative Strength Index (RSI) Overbought and the KDJ Death Cross indicators on July 17, 2025, at 11:45. This suggests that the stock price has risen at an unsustainable rate, exceeding its fundamental support, and is now experiencing a shift in momentum towards a downward trajectory, potentially leading to further declines.

Broadcom's (AVGO) stock has been experiencing significant volatility, with the Relative Strength Index (RSI) Overbought and the KDJ Death Cross indicators triggering on July 17, 2025, at 11:45. This suggests that the stock price has risen at an unsustainable rate, exceeding its fundamental support, and is now experiencing a shift in momentum towards a downward trajectory, potentially leading to further declines.

The recent launch of the Tomahawk Ultra Ethernet switch, designed to enhance high-performance computing (HPC) and AI applications, has contributed to a 61% share price increase over the past quarter [1]. This innovative product offers ultra-low latency and lossless networking, making it a critical component for modern AI workloads. However, despite this growth, challenges remain, including Broadcom's reliance on a few hyperscale customers and geopolitical risks [1].

Broadcom's focus on AI and HPC aligns with its ongoing investments in AI and hyperscale partnerships. The company's strategic initiatives, such as the introduction of VMware Cloud Foundation 9.0, are aimed at driving technological leadership and expanding its AI customer base [1]. These efforts could potentially bolster revenue and margin forecasts, particularly by transitioning to subscription models.

Wall Street analysts are projecting that Broadcom will trade just below $300 over the next 12 months, as the firm continues to capitalize on growing demand in the AI sector [2]. Notably, AVGO has recovered from its early April dip, with year-to-date gains standing at 21%. As of press time, the stock is valued at $281.01, representing a nearly 2% increase in the past 24 hours [2].

However, Nancy Pelosi's recent investment in Broadcom, exercising 20,000 call options, is seen as a bullish indicator. This move, valued between $1,000,001 and $5,000,000, suggests that Pelosi expects the stock to rise [3]. Additionally, analysts have maintained a positive outlook on Broadcom despite the cancellation of its $1 billion microchip facility plans in Spain [3].

In conclusion, while Broadcom's recent share price surge is attributed to the launch of the Tomahawk Ultra Ethernet switch and robust Q2 earnings, the triggering of RSI Overbought and KDJ Death Cross indicators suggests a potential downward trajectory. The company's focus on AI initiatives and subscription models positions it for future financial performance, but market volatility and geopolitical risks remain significant challenges.

References:
[1] https://www.ainvest.com/news/broadcom-tomahawk-ultra-ethernet-switch-catalyst-ai-driven-growth-market-volatility-2507/
[2] https://finbold.com/wall-street-sets-broadcom-avgo-stock-price-for-next-12-months-2/
[3] https://www.ainvest.com/news/nancy-pelosi-bold-bet-broadcom-1-5-million-investment-ai-chipmaker-2507/