Broadcom’s Strong Technical Setup, Bullish Trend Ahead Of Earnings

The company is part of the AI5 group of stocks – which the markets expect to grow on the back of artificial intelligence. The stock is up over 112% in the past year; climbing over 20% YTD.

Here’s how the stock is technically setup ahead of earnings, and how the stock currently maps against Wall Street estimates.

Broadcom Stock Technical Setup Ahead Of Earnings

As the company prepares to report Q1 earnings, the technical setup for Broadcom stock reveals a strongly bullish trend. The share price consistently remains above its 5, 20, and 50-day exponential moving averages. However, the presence of selling pressure suggests a potential risk of future bearish movements.

At its current price of $1,342.75, AVGO exhibits favorable signals based on its moving averages. The 8-day simple moving average suggests an advantageous position at $1,329.50, while the 20-day SMA at $1,286.08 and the 50-day SMA at $1,202.77 also portray promising trends. The 200-day simple moving average, standing at $958.91, reinforces the favorable outlook at the current stock price.

The Moving Average Convergence Divergence (MACD) indicator stands at 41.1, reinforcing a bullish outlook, while the Relative Strength Index (RSI) of 61.45 suggests that Broadcom may be overbought. The Bollinger Bands (25) signal favorable conditions within a range of $1,217.39 to $1,324.65, while the Bollinger Bands (100) similarly support this outlook within a range of $914.96 to $1,228.74.

Overall, the technical analysis suggests a favorable outlook for Broadcom’s stock, with multiple indicators supporting a bullish position.

Broadcom Analysts Consensus Ratings

Ratings & Consensus Estimates:The consensus analyst rating on Broadcom stock stands at a Buy, with a price target of $959.67.