Broadcom Shares Tumble, Closing Near Day’s Low in a Bearish Signal for Monday

SAN JOSE, CA – Shares of semiconductor giant Broadcom Inc. (AVGO) experienced a significant sell-off on Thursday, June 13, closing the session with a steep loss that points to potential continued weakness as the new trading week begins.

Broadcom finished the day at

7.37, or 2.88%. The negative sentiment lingered after the market close, with after-hours trading showing a marginal further dip. The stock’s performance reflects a day dominated by sellers, erasing any early signs of strength.

The trading session began with the stock already on the back foot, opening well below the previous day’s close of $256.07. Although buyers attempted a brief rally in the morning, pushing the price to a high of $254.00, the effort was short-lived. From there, the stock entered a steady and unforgiving decline for the remainder of the day, ultimately hitting a low of $248.35 and closing just pennies above it.

Analysis for the Week Ahead:

The technical picture painted by Thursday’s trading action is decidedly bearish for Broadcom heading into Monday. Several key indicators suggest the market may go down further:

1. Closing on the Lows: A stock that closes near its intraday low indicates that sellers were in firm control until the very end of the session, with no significant buying interest emerging to support the price.

2. Failed Rally: The inability to sustain the morning’s modest gains and the subsequent reversal is a strong sign of underlying weakness and a lack of conviction from buyers.

3. Significant Daily Loss: A nearly 3% drop is a substantial move that often signals a shift in investor sentiment, and this negative momentum can easily carry over into the next trading day.

Given the intense selling pressure and the stock’s inability to recover, investors should be prepared for a potential test of Thursday’s lows when the market opens on Monday. Unless significant positive news emerges over the weekend, the path of least resistance for Broadcom appears to be downwards. Traders will be watching the $248.35 level closely as a key area of support.