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Broadcom AVGO Stock Soars 26% Weekly as DJIA Soars — Is the Bull Trend Back?
Skerdian Meta•Friday, April 11, 2025•3 min read
AVGO stocks gained 26% on the week as optimism returns after the tariff freeze, while Dow Jones closed 6% higher.
Early Week Pressure Sends AVGO to Key Support
Broadcom (AVGO) began the week under pressure, opening Monday with a sharp downside gap and slipping nearly 1% to a low of $138.10. This move briefly breached the critical green 100-week simple moving average (SMA), a level that has served as a key long-term support indicator. At that point, shares were down roughly 42% from their recent peak just a few months earlier, reflecting investor concerns over renewed trade tensions and tech sector volatility.
While Broadcom’s recent earnings report had struck a relatively upbeat tone, it was overshadowed by geopolitical headwinds. Investor sentiment was more heavily influenced by the broader macro narrative, particularly fears around potential trade restrictions. Although China’s retaliatory tariffs technically target exports from the U.S., not Taiwan—where Broadcom manufactures its advanced semiconductor chips—fears that Washington could impose stricter export controls weighed on the stock.
Tariff Freeze Sparks Rebound Off the 100 Weekly SMA
However, the market mood quickly shifted after President Donald Trump announced a three-month suspension of retaliatory tariffs for all negotiating countries, excluding China. This move provided a degree of clarity and breathing room for multinational tech firms, sparking a strong mid-week recovery across equity markets.
Broadcom’s share price followed suit. After Monday’s weakness, AVGO reversed course and surged 6% in Thursday’s session alone, pushing weekly gains to an impressive 26%. The rally lifted the stock decisively above its 50-week SMA (yellow line), which now serves as a new support level.
Despite this strength, AVGO remains below the critical resistance area near $185. A firm break above that threshold would confirm a full return to bullish territory and likely invite additional buying interest.
Broad Market Tailwinds Support Tech Recovery
Broadcom’s rally mirrors broader market dynamics, as U.S. stock indices posted their best week in months. The tech-heavy Nasdaq Composite soared over 7% for the week—its strongest since November 2022—while the S&P 500 and Dow Jones each gained nearly 5%. Even small-cap stocks participated, signaling a broad-based rebound in risk appetite.
This reversal in market sentiment has been fueled by a combination of soft U.S. inflation data, easing concerns over interest rates, and hopes that a resolution to trade disputes may be on the horizon. Although geopolitical risks remain, the rebound underscores investor optimism as we move deeper into the second quarter.
Outlook: Room to Run if Resistance Breaks
The week’s price action signals that AVGO may have found a near-term bottom, with the technical setup improving significantly. Still, the stock must break above the $185 resistance zone to confirm a sustained uptrend. If it does, Broadcom could regain its footing in a broader tech recovery, particularly if global trade conditions stabilize further.
For now, the bounce above key moving averages suggests the worst of the recent selloff may be behind, but traders will likely stay cautious until resistance levels are taken out with conviction.
Friday’s Closing Levels – Major U.S. Stock Indices
Dow Jones Industrial Average
Gained 619.05 points, or +1.56%, to close at 40,212.71.
S&P 500 Index
Rose 95.31 points, or +1.81%, finishing the session at 5,363.36.
Nasdaq Composite
Advanced 337.14 points, or +2.06%, ending the day at 16,724.45.
Russell 2000 (Small Caps)
Increased 28.80 points, or +1.57%, closing at 1,860.20.
Weekly US Stock Market Performance Recap
Dow Jones Industrial Average
Up 4.95% for the week — marking its best weekly gain since October 30, 2023, when it rose 5.07%.
S&P 500
Logged a 5.7% weekly gain, its strongest performance since the 5.85% surge during the week ending October 30, 2023.
Nasdaq Composite
Soared 7.29% over the week — its best showing since the 8.10% rally in the week ending November 7, 2022.
Russell 2000
Gained 1.82%, its best week since a 3.95% rise on January 13, 2025.
DOW
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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