Broadcom Surges 9.77% on Bullish Technicals as Key Indicators Signal Upside Momentum

Broadcom (AVGO) Technical Analysis
Broadcom (AVGO) surged 9.77% in the latest session, closing at $369.57 on substantial volume of 50.98 million shares. This sharp rebound follows a brief pullback, warranting a multi-indicator assessment of the stock’s trajectory.
Candlestick Theory
The September 10 candle is a robust bullish marubozu, closing near the high ($372.97) after gapping up from the prior close of $336.67, signaling intense buying pressure. This pattern invalidates the preceding bearish engulfment candle from September 9. Key resistance is now established at $372.97 (intraday high), while support converges at $335.83 (September 9 low) and the psychological $350 level. The September 5 hammer candle—with a long lower wick rejecting prices below $331.42—marked a swing low, reinforcing $331–$335 as critical support.
Moving Average Theory
The 50-day moving average (currently near $320) slopes upward, sustaining above the 100-day (~$300) and 200-day (~$250) averages, confirming a long-term bullish structure. Recent volatility saw prices briefly breach the 50-day MA in early September, but the swift recovery above all three MAs signals resilient uptrend continuation. The 50/100/200-day alignment—with the shortest MA leading—further validates bullish momentum.
MACD & KDJ Indicators
The MACD histogram flipped positive on September 10, with the MACD line crossing above its signal line—a bullish reversal signal after a brief dip into negative territory. KDJ concurrently exited oversold territory (sub-30 in early September), with the %K line (83) crossing above %D (75), supporting near-term upside momentum. While not yet overbought, KDJ’s rapid ascent warrants monitoring for potential short-term exhaustion.
Bollinger Bands
September’s volatility triggered a pronounced band expansion after August’s contraction (squeeze), reflecting rising market uncertainty. Prices have now reclaimed the upper Bollinger Band ($365–$370), typically signaling overbought conditions but also suggesting strong directional momentum. The close above the upper band—coupled with high volume—implies near-term consolidation risk, though the breakout may extend if volatility persists.
Volume-Price Relationship
The September 5 surge occurred on record volume (78.4 million shares), confirming the reversal’s legitimacy. Recent gains (September 8 and 10) saw volume expand 30–50% above the 20-day average, validating bullish conviction. Conversely, the September 9 decline lacked volume support, indicating weak seller commitment. This volume asymmetry reinforces the current bullish bias.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from oversold territory (30.5 on September 5) to 67.5—approaching but not breaching the overbought threshold (70). This recovery without divergence suggests balanced momentum. While RSI under 70 avoids immediate exhaustion signals, a rapid ascent above 75 could prompt short-term profit-taking near the $372 resistance.
Fibonacci Retracement
Using the swing low of $146.29 (April 2024) and the September 10 high ($372.97), key Fibonacci levels are identified. The August–September pullback found precise support at the 38.2% retracement ($295–$300), aligning with the 50-day MA and volume-backed reversal. The 23.6% level ($320) now acts as immediate support, while a breakout above $373 opens the 161.8% extension target near $400.
Confluence and Divergence Insights
Confluence is observed at $295–$300, where Fibonacci support, the 50-day MA, and volume-driven reversal coincided, creating a high-probability bounce zone. No material divergences exist currently, with MACD, RSI, and KDJ aligned in their recovery narratives. The only caution emerges from Bollinger Band overextension and RSI nearing overbought territory, suggesting potential consolidation before testing $373 resistance.
Synthesized Outlook
Broadcom’s technical posture leans bullish, underpinned by moving average hierarchy, volume-backed reversals, and momentum indicator recoveries. The $350–$355 zone offers robust support, with a decisive close above $373 likely accelerating upside toward $400. Short-term consolidation could occur given Bollinger Band and RSI readings, but the overall structure favors buying dips near convergences at $350 or the 23.6% Fibonacci level ($320).