Are AVGO and NVDA broken leadership?

Broadcom (AVGO) and NVIDIA (NVDA) have deteriorated on both and absolute and relative price basis and are at risk of becoming broken leadership stocks.

Broadcom (AVGO) has topped out relative to the S&P 500 and is at risk to form a top on an absolute price basis. Losing the 324-308 range (pattern neckline, rising 40-week moving average (WMA), and 38.2% retracement of the April-December 2025 rally) would confirm this top and signal downside risk to 276 (50% retracement) and then 252-243 (mid 2025 breakout point, 61.8% retracement, and pattern count).

The clock is ticking, and it would take an immediate reversal and rally above 342-349 (13- and 26-WMAs) and 359-361 (chart levels) to call into question and possibly negate this bearish setup for AVGO.

Chart 1: Broadcom (AVGO) (top) and relative to the S&P 500 (bottom)

NVIDIA (NVDA) is at risk to break down from head and shoulders topping patterns on both an absolute and relative price basis. Losing the 172-164 range (pattern neckline, rising 40-week moving average (WMA), 61.8% extension of the November-December decline projected from the January peak, and 38.2% retracement of the April-November 2025 rally) would confirm this top and signal downside risk to 151-149 (100% extension and 50% retracement) and then 135-125 (61.8% extension and 161.8% extension, and pattern count).

It would take an immediate reversal and rally above 182-184 (13- and 26-WMAs) and 193-195 (chart levels) to call into question and possibly negate this bearish setup for NVDA.

Chart 2: NVIDIA (NVDA) (top) and relative to the S&P 500 (bottom)

Breakdowns for week price momentum as defined by the 14-week RSI could provide a bearish leading indicator for both AVGO and NVDA.

Chart 3: Broadcom (AVGO) (top) and the 14-week RSI (bottom)

Chart 4: NVIDIA (NVDA) (top) and the 14-week RSI (bottom)