Technical Analysis

Broadcom’s performance before earnings report

By Antreas Themistokleous

03 March 2023

Broadcom Technicals and charts

Broadcom Inc. (AVGO) share price performed very well in the last quarter of the year. And that has continued into the new year with only a minor correction happening in the last 3 sessions.

After an overall hard year, the company managed to gain most of its losses back and is looking strong in the near short run. The company’s earnings report for the fiscal quarter, ending January 2023, is set to be released on Thursday, 2 March, after market close. The consensus EPS for Q1 is $9.38 compared to Q1 2022’s $7.68. 

Even though the company’s share value is lower than the at beginning of the year, the financials of the company are looking healthy. The net income has increased compared to previous years and the current ratio is over 260%, meaning the company has the capacity in assets to cover its short-term liabilities. The dividend yield rate is over 3%, while the payout ratio is just above 60%, making the share an attractive addition to any investor’s portfolio.

Broadcom technical analysis chart

From the technical analysis perspective, the price has been trading in a steady bullish movement throughout the whole quarter before a correction came after the resistance of the upper band of Bollinger bands in early February. 

Currently, the price is trading at a strong technical support area which consists of the 50-day moving average, the lower band of Bollinger bands, and the 23.6% of the Fibonacci retracement level.

The Stochastic oscillator is recording extreme oversold levels, possibly indicating that the correction might be close to its end and a rebound to the upside might be imminent. The following sessions are important to the share price since they could indicate the near-term movement of the stock.

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Antreas Themistokleous
Antreas Themistokleous

Antreas Themistokleous is a trading specialist in Exness. He is a Certified Financial Technician since 2018. As a member of the Society of Technical Analysts, Antreas is implementing advanced use of indicators and patterns to conclude in an action plan for different trading strategies.

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