Watch These Broadcom Price Levels as Stock Follows Nvidia Lower in Chip Stock Selloff

Broadcom (AVGO) shares fell to a one-month low on Thursday, February 28, 2025, as investors digested Nvidia's earnings and President Trump's latest announcement on tariffs. The broader chip stock selloff dragged Broadcom's stock down by 7%, erasing 15% of its value since the start of the year. However, it's essential to note that Broadcom's stock has gained more than 50% over the past 12 months, driven by surging demand for its AI chips. As investors monitor Broadcom's stock trajectory, they should keep an eye on several key price levels that could influence its near-term performance.



1. Major Support Levels to Watch:
* $185: This area is positioned just below the descending channel and could find support near the top trendline of a prior ascending triangle on the chart and the nearby 200-day MA. A decisive close below this price could see the shares decline to the $160 level.
* $160: This location may provide a floor near several troughs that formed on the chart in June and November last year.
* $140: Further selling could bring lower support around this level, which may attract investors looking for buying opportunities near a horizontal line that connects a range of similar price points on the chart from March through to September.
2. Key Overhead Areas to Monitor:
* $230: If Broadcom shares resume their longer-term uptrend, investors should watch how the price responds to the descending channel's top trendline, which currently sits at about $230 near the 50-day MA.
* $295: Investors could forecast a more speculative upside target by using the bars pattern tool. This technique works by taking Broadcom’s trending move higher from late November to mid-December and repositioning it from the descending channel’s lower trendline, which projects a target of around $295.



Investors should closely monitor these support and resistance levels as Broadcom's stock follows Nvidia lower in the chip stock selloff. If the stock falls below the key support levels, it may continue its downward trend. Conversely, if it manages to break above the resistance levels, it could resume its longer-term uptrend. However, it's crucial to keep in mind that the broader market sentiment and specific company news could also impact Broadcom's stock performance. Therefore, investors should stay informed about the latest developments and maintain a balanced perspective when making investment decisions.