2025-12-17 19:30:00
The broader stock indices are continuing their tumble with the:
- S&P index -70 points or -1.03%.
- NASDAQ index -350 points or -1.52%.
- Dow industrial average is down -200 points at -0.41%.
- Russell 2000 is down 1% on the day
Shares of Broadcom are continuing their run to the downside since announcing earnings on Thursday of last week.
Key Technical Takeaways
-
Major Breakdown: Broadcom shares have plunged -4.92% to $324.49, breaking key support levels.
-
Bear Market Confirmed: The stock is now down 21.7% from its pre-earnings peak of $414.61, officially entering correction territory.
-
Moving Average Failure: The price has sliced through the critical 100-day moving average at $340.98, which now turns into resistance.
-
Next Support Target: Sellers are eyeing the 38.2% Fibonacci retracement level at $308.98 as the next major downside objective.
Selling Pressure Accelerates: Lowest Levels Since September
Broadcom shares continue to come under intense selling pressure, with the stock shedding -$16.80 (-4.92%) today to trade at $324.49.
This move marks a significant deterioration in the technical picture, as the price has fallen to its lowest level since the earnings report in September. During that earnings event, the price had gapped higher from $306 per share. Today’s decline has nearly filled that gap, wiping out months of gains.
The selling intensity is highlighted by the breach of the October 10 swing low at $324.05, with today’s intraday price stretching as low as $321.42.
The Trend: From Peak to Correction
The reversal has been sharp. Since hitting a peak of $414.61 the day before its last earnings announcement, Broadcom has tumbled 21.7% to current levels.
From a technical standpoint, the damage was compounded today when the price ran straight through the 100-day moving average, located at $340.98. A close below this moving average is a bearish signal, suggesting that momentum has firmly shifted to the sellers.
What’s Next? The Fibonacci Target
With the 100-day moving average now in the rearview mirror, traders are looking lower for support.
The next major technical floor comes in at the 38.2% Fibonacci retracement of the major move up from the April low ($138.10) to the recent highs. That calculation yields a key support target at $308.98.
The Bullish Requirement
For buyers to regain any confidence that a bottom is in place, they have significant work to do. The first step would be reclaiming the broken 100-day moving average at $340.98. Until price can get back—and stay—above that level, the path of least resistance remains to the downside.
Despite the sharp decline, the price is still up close to 40% for the year.
———————————————————————————————————————————————————–
Oracle shares are now down close to 50% from its peak
Key Technical Takeaways
-
Massive Correction: Oracle shares have collapsed roughly 48% from the all-time high of $345.72 reached in September.
-
The Catalyst: The sell-off began after the September 9/10 infrastructure deal announcements, which investors now fear carry an unsustainable debt burden.
-
Lowest Level in Months: At $178.79, the stock is trading at its lowest valuation since mid-June.
-
Critical Support: The price is fast approaching the June 11 closing level of $166.64, which serves as the next major downside reference.
-
YTD Context: Despite the crash, the stock remains up 7.4% on the year, highlighting the extreme “overbought” nature of the prior rally.
From Boom to Bust: The Debt Hangover
Oracle shares are undergoing a severe repricing, with the stock currently down approximately 48% from its all-time high.
The aggressive sell-off traces back to September 10, the day the stock peaked at $345.72. This peak followed the announcement of major infrastructure deals after the close on September 9. While initially celebrated, the narrative has shifted dramatically. The market is now fixated on the large debt burden required to finance this massive buildout, causing the stock to be on a steep, relentless decline ever since.
Technical Breakdown: Approaching June Lows
The selling pressure has pushed Oracle to its lowest levels in six months.
-
Current Price: The stock is currently trading around $178.79.
-
The Danger Zone: This valuation brings the price uncomfortably close to the levels seen on June 11, when the share price closed at $166.64.
Traders will be watching this $166.64 level closely. If the $178.79 support fails to hold, that June closing price becomes the primary technical floor.
Reality Check: Still Green on the Year
Perhaps the most telling statistic of this volatility is the Year-to-Date performance. Even after a nearly 50% haircut from the highs, Oracle shares are still higher on the year by 7.4%.
This statistic serves as a stark reminder of how overextended and overbought the stock became during its run-up to the September highs. The current move is not just a reaction to news, but a violent unwinding of a crowded momentum trade.
