We have updated our wave count and now expect the formation of a new major all-time high, which will likely mark a long-term top ahead of a significant upcoming corrective phase.
Initially, we expected Broadcom to remain in a corrective structure, forming green wave 4. However, based on the recent impulsive price action over the past few days, we now consider it likely that this corrective phase has already been completed. As a result, we expect Broadcom to be forming a final bullish fractal—green wave 5—which would complete the entire green cycle and unfold as yellow wave 1.
This scenario will be validated once Broadcom breaks above its current all-time high at $414.61.
For the completion of green wave 5, and therefore yellow wave 1, we have defined a Fibonacci price target zone ranging from:
- 61.8% at $460.83
- 100% at $566.35
This zone should be viewed as a guideline for potential price targets rather than a strict benchmark for our performance evaluation, where we mainly count our outlined fibonacci buying or selling zones. Within this range, the market is likely to form its major high and complete yellow wave 1.
Following the completion of yellow wave 1, we expect the stock to enter a substantial corrective phase, forming yellow wave 2. We will provide a detailed long-term outlook for this correction as soon as we can identify a confirmed major top in Broadcom.
If you entered positions within our previously defined Fibonacci retracement zone (now marked as deactivated in grey), you should currently be in profit. From the upper boundary of that zone to the current price of $396.72, this represents a gain of approximately 28%. Should the market reach the lower bound of our target zone at the 61.8% Fibonacci level, potential gains could extend to nearly 49%. This highlights the strength and effectiveness of our analytical approach.
If any structural changes occur, or once a major top can be identified, we will provide an immediate update.
Kind regards,
Monalytics
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