📉🚀🧠 AVGO Volatility Reset at a Structural Inflection, When Price Panics and Institutions Reprice 🧠🚀📉

$Broadcom(AVGO)$ $NVIDIA(NVDA)$ $Alphabet(GOOGL)$ 🔍 Market Dislocation at a Critical Level 🔍

I’m watching a rare disconnect where price collapses while Wall Street is simultaneously repricing Broadcom higher, and that tension is now sitting directly on a critical structural inflection. $AVGO flushed more than -11% post earnings into the $355.50 trendline and Fibonacci confluence, exactly where prior selloffs have historically stabilised. This is not random volatility, it is a forced reset where positioning, liquidity, and conviction are being repriced in real time.

📊 Chart Structure and Volatility Reset

I’m anchored to the daily chart first. The highlighted earnings candle from this week is almost identical in length to the September flush candle. Same magnitude, same emotional signature, same resolution zone. Both moves drive directly into the rising trendline, the key Fibonacci support at $355.50, and a well-defined volume shelf that previously acted as acceptance during consolidation. That symmetry matters. Markets remember stress. Downside risk remains technically open toward $349, which aligns with the next liquidity pocket and demand shelf, but the reaction into the volume shelf suggests selling pressure is slowing rather than accelerating.

💰 Flow Versus Fundamentals

What reinforces this inflection is how aggressively positioning flipped into the flush. Friday marked $AVGO as the most unusually traded name on the tape, with over $29M in single-leg calls sold and $19M in puts purchased. That is active volatility expression, not passive hedging. Price responded accordingly, closing at $359.93, down -11.43% or more than $43 in a single session. Gamma was reset, weak hands were cleared, and price was driven directly into long-term structure.

I’m also layering in the broader rotation backdrop. Wall Street is increasingly looking beyond the Magnificent Seven, with strategists urging capital toward previously unloved sectors like healthcare, industrials, energy, and financials as skepticism grows around Big Tech valuations and the scale of AI capex. In that environment, leaders like $AVGO become liquidity sources during rebalancing, even when fundamentals are improving. That matters, because it frames this earnings reaction as rotation-driven pressure layered on top of a positioning reset, not a deterioration in the AI demand story.

At the same time, fundamentals moved the opposite way. Morningstar reiterated conviction with its call titled “Buy the Dip Before the Rocket Takes Off,” pointing to accelerating AI chip demand, Google’s TPU momentum, and a newly disclosed $11B Anthropic order, while lifting fair value to $480. Truist escalated further, raising its price target to $500 from $365 in the same earnings cycle. That is not incremental optimism, that is a structural repricing. The tape confirmed it late, with a massive buyer stepping in at the close to absorb liquidity into fear.

🏁 Conclusion

I’m treating Monday as a pure structure test rather than a sentiment event. Holding the $355.50 confluence signals absorption and opens the door to stabilisation and range repair, with $377 the first level that forces a broader reassessment. A failure to hold simply allows a deeper liquidity probe toward $349, not a thesis break but a continuation of the volatility reset already underway. This is the market deciding whether the earnings shock was an overreaction or the final clearance before structure rebuilds.

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