AVGO Maintains Bull Cycle Structure After 20% Monthly Pullback

• AVGO remains structurally bullish despite a deep correction within its established monthly trend.

• AVGO consolidation reflects controlled absorption rather than broad-based distribution pressure.

• AVGO long-term projections stay intact as momentum resets within a dominant cycle.

AVGO is stabilizing after a sharp corrective move, with higher-timeframe signals remaining constructive. Broadcom shares recently traded near $341.98 following elevated volatility. Short-term price compression contrasts with a resilient monthly trend structure.

Monthly Trend Structure Remains Intact

AVGO continues to respect a long-term uptrend visible on the monthly chart. The recent 20% pullback aligns with historical corrective behavior within strong advances. Price has not violated rising structural support. This positioning maintains the broader bullish framework.

Market commentary from Peter DiCarlo emphasized the importance of system-based signals. He noted the Monthly BX indicator remains green. Similar setups previously preceded renewed upside expansions. This reinforces trend-based discipline over reactive sentiment.

Source: X

Momentum indicators have cooled without flipping bearish. This adjustment reflects normalization after extended upside phases. Higher lows remain intact across the structure. These conditions historically favor continuation rather than reversal.

Correction Reaches Established Discount Zone

AVGO retraced into a recognized discount area tied to prior impulse legs. This zone has repeatedly supported re-accumulation in past cycles. Long-term participants often rebuild exposure at such levels. Short-term volatility tends to force weaker positioning out.

Volume increased during the decline but remained orderly. There was no evidence of capitulation-driven selling. Activity has since moderated as price stabilized. This pattern suggests supply absorption rather than aggressive distribution.

Controlled selling pressure supports the corrective narrative. The market appears balanced rather than stressed. Buyers and sellers continue to engage near perceived value. This behavior aligns with structural resets inside dominant trends.

Short-Term Consolidation Guides Forward Outlook

AVGO as of writing, trades within a compressed intraday range. Resistance is visible near the $342–$343 region. Support continues to form around the $341 area. This balance reflects digestion rather than directional conviction.

Source: coinmarketcap

Immediate continuation higher appears statistically limited. Historical patterns show sideways movement often follows deep pullbacks. Consolidation allows momentum metrics to normalize. These phases frequently test patience more than trend strength.

Longer-term projections remain anchored to monthly structure. DiCarlo outlined a measured framework targeting the $450 region by August 2026. That view depends on trend preservation, not short-term precision. Current conditions suggest preparation within an ongoing bullish cycle.