Broadcom (AVGO)
Broadcom Poised for a Short-Term Peak After a Powerful Run!
Since 2009, Broadcom has established a clear long-term Elliott Wave structure, forming an initial green Wave 1 followed by green Wave 2, laying the foundation for the stock’s broader bullish cycle.
After completing green Wave 2 in early 2020, Broadcom entered a strong and persistent uptrend, unfolding a powerful green Wave 3. Within this advance, the light-blue cycle degree is progressing as part of green Wave 3 and is now pushing through its final impulsive subdivisions, suggesting that the entire bullish sequence is nearing exhaustion.
In our primary long-term expectation, we anticipate Broadcom to complete green Wave 3 and subsequently enter a corrective phase, within green Wave 4. This retracement should reset momentum before the stock resumes its broader advance into green Wave 5. Completion of green Wave 5 would, however, finalize the larger yellow Wave 1, potentially setting a major long-term top for the stock.
Once green Wave 4 completes, we will define a Fibonacci retracement zone to highlight potential attractive re-accumulation opportunities. For now, the key task is to identify where Broadcom will establish its local top, marking the transition into the green Wave 4 correction.
To support this, we provide a short-term outlook with a more detailed wave count, outlining our expectations for the immediate price action before Broadcom sets its final high and aligns with our long-term scenario.
Our short-term outlook indicates that Broadcom is preparing for an impulsive final advance.
After completing corrective light-blue Wave 4, the stock initiated a new impulsive sequence within dark-blue Wave 1, followed by a brief dark-blue Wave 2 pullback and a very strong dark-blue Wave 3. Broadcom has now completed a shallow correction into dark-blue Wave 4 and is in the early stages of generating fresh upward impulses into the final leg of the dark-blue cycle: dark-blue Wave 5.
For this terminating Wave 5, we have projected Fibonacci price targets, marking the zone in which we expect this wave to conclude—simultaneously completing light-blue Wave 5 and thereby finalizing green Wave 3.
Our target range extends from the 123.6% extension at $424.29 up to the 161.8% extension at $505.29. This represents the most probable termination zone for the current cycle. However, Broadcom has shown an exceptionally impulsive character throughout this advance, leaving open the possibility of bullish extensions beyond our projected Fibonacci levels.
Trading Plan:
If Broadcom breaks above its current all-time high at $386.34, we expect a direct continuation into our projected target zone, where the stock is likely to establish a short-term major top and begin a corrective decline into the long-term green Wave 4.
We remain short-term bullish until a clear top structure is identified.
Once the top is confirmed, our sentiment shifts to bearish, reflecting the anticipated corrective phase of green Wave 4.
Should any structural changes occur, we will immediately provide an updated analysis and revised outlook for this title.
Kind regards,
Monalytics
