Broadcom (AVGO) Update
Broadcom has activated our first target zone, aligning with the expected completion of the initial corrective phase.
As anticipated in our previous analysis, Broadcom has now reached our first projected Fibonacci retracement zone. On 2 February 2026, we initially outlined expectations for price to move into this retracement area (https://icreatures.de/broadcom-avgo-update/).
Today, Broadcom touched the 38.2% Fibonacci level at $308.72 and continued slightly lower toward the 50% retracement at $276.24. This zone represents a short-term buying opportunity and, from a long-term perspective, a favorable accumulation area for this market.
Within this retracement zone, we expected Broadcom to complete the bearish orange Wave A. With price now potentially finishing this wave, we anticipate a short-term recovery, with bullish momentum pushing the stock back toward its all-time high to form orange Wave B.
Following the completion of Wave B, our primary scenario expects a final major sell-off into our second anticipated Fibonacci retracement zone, where orange Wave C should terminate and unfold into green Wave 4. This would mark the completion of the broader corrective phase and set the stage for a renewed impulsive advance into green Wave 5, targeting new all-time highs.
The second Fibonacci retracement zone for the completion of the overall correction into green Wave 4 is defined as follows:
- 38.2% at $261.94
- 50% at $214.19
- 61.8% at $167.86
These levels represent prime long-term buying opportunities ahead of the next major bullish impulse within green Wave 5.
If any structural changes occur, or if Broadcom either validates the currently active Fibonacci retracement zone or reaches the second retracement zone, we will provide immediate updates.
Kind regards,
Monalytics
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