Broadcom (AVGO) Price Forecast: Bullish Reversal Opens Path Toward $495

Published: Oct 08, 2026

Key Highlights

• Broadcom has broken out from an inverse head-and-shoulders pattern.
• The stock has reclaimed both the 50-day and 200-day moving averages.
• Key resistance level identified at $380.84 for a potential wedge breakout.
• Initial upside target set at $432.73, with higher targets at $495, $540.85, and $594.

Technical Analysis

Broadcom Inc. (AVGO), a leading semiconductor and infrastructure technology company, has recently triggered a bullish reversal signal. This was marked by a breakout from an inverse head-and-shoulders pattern, which is a classic technical indicator of a potential price reversal. The breakout was confirmed by the stock reclaiming both the 200-day and 50-day moving averages, currently positioned around $368.07 and $372.53, respectively.

Resistance was noted at a 33-day high of $380, with the closing price above both moving averages, indicating a strong bullish sentiment. However, the breakout above the lower swing high at $376.59 has yet to be confirmed by a daily close above that level.

Fibonacci Analysis

The breakout occurred near the completion of a 78.6% Fibonacci retracement, which is often seen as a critical level in technical analysis. This suggests that the likelihood of a recovery is increasing, especially given the significance of the 200-day moving average as both support and resistance in recent months.

Wedge Pattern and Future Targets

AVGO is still in the early stages of its potential recovery. The inverse head-and-shoulders pattern is situated within a larger falling bullish wedge that has not yet confirmed its breakout. The bullish momentum from the recent breakout could lead to an initial breakout above the downtrend line that defines the upper boundary of the wedge. The recent high of $380.84 is crucial, as an advance above this level would likely signal a break above the downtrend line and the wedge pattern.

The initial upside target is set at the lower swing high of $432.73 from August. However, a typical target from the wedge pattern is its starting point, which corresponds to the June peak of $495. Additional potential targets are identified at $540.85 and $594, based on Fibonacci extension and projection levels.

Conclusion

Broadcom's recent technical developments suggest a strong bullish outlook, with several key resistance levels to watch. Investors should monitor the price action closely, particularly around the $380.84 level, to confirm the continuation of this bullish trend.