Broadcom (AVGO) is developing an interesting Elliott Wave structure on both the long-term and short-term timeframes. The larger count suggests that AVGO could be preparing for a substantial Wave 3 advance toward 1,170 if the stock successfully breaks above the critical 476 level. At the same time, the shorter-term structure provides a nearer-term bullish roadmap, with a potential Wave 3 target of 500–520 if 425 breaks to the upside.

Having both counts align directionally is significant because the short-term structure can potentially provide the first indication that the larger long-term count is beginning to activate.

The long-term structure is:

Wave 1: 150 → 490

Wave 2: 490 → 360

Wave 3 target: 1,170 if 476 breaks

The short-term structure is:

Wave 1: 369 → 433

Wave 2: 433 → 413

Wave 3 target: 500–520 if 425 breaks

The immediate focus is therefore 425 on the short-term count, while 476 represents the more important long-term confirmation level.

The larger Elliott Wave structure begins with a powerful proposed Wave 1 advance from 150 to 490.

That represents a gain of 340 points, establishing a significant initial bullish impulse.

Wave 1 is important because it creates the foundation for the larger five-wave structure. Once the first major impulse is established, the market typically enters a corrective phase before potentially beginning the next major advance.

For AVGO, the proposed Wave 1 ended at 490.

The stock subsequently entered a correction, producing the proposed Wave 2 decline.

The proposed Wave 2 correction moved from 490 down to 360.

That represents a decline of 130 points from the Wave 1 high. While significant, the correction remained well above the original 150 starting point of Wave 1.

This is an important distinction.

The current count assumes that 360 completed the larger Wave 2 correction. If that interpretation is correct, AVGO has potentially been building the foundation for a much larger Wave 3.

The next major question is whether the stock can recover enough momentum to break through the key 476 level.

The long-term bullish scenario becomes much more compelling if AVGO breaks 476 to the upside.

This level is important because it sits immediately below the previous Wave 1 high at 490. A move through 476 would demonstrate that the stock has recovered most of the prior corrective decline and is approaching the previous major high.

The proposed count specifically calls for a Wave 3 target of 1,170 if 476 breaks.

That makes 476 the key long-term confirmation level.

The sequence is therefore:

150 → 490: Wave 1

490 → 360: Wave 2

476: Long-term breakout confirmation

1,170: Potential Wave 3 target

A decisive move above 476 would suggest that the correction from 490 to 360 may have ended and that AVGO is beginning to transition into the next major impulsive phase.

The next major obstacle would naturally be 490, the previous Wave 1 high.

A move above 490 would provide even stronger confirmation that AVGO has entered a new bullish phase.

Wave 3 is frequently the strongest portion of an Elliott Wave impulse.

The first Wave 1 advance took AVGO from 150 to 490, demonstrating significant underlying demand. After the subsequent correction to 360, the market may have created the conditions for another expansion.

If the stock breaks 476 and then clears 490, the market would be establishing new highs relative to the previous Wave 1.

That would provide an important structural confirmation.

The projected 1,170 target represents a substantial extension beyond the previous 490 high. Such an advance would require continued bullish momentum and would likely contain numerous smaller internal waves.

A Wave 3 of this magnitude would not necessarily occur in a straight line.

AVGO could experience significant pullbacks along the way. Those pullbacks would not automatically invalidate the larger count as long as the overall impulsive structure remains intact.

The key is that the market must continue confirming the larger pattern.

The short-term Elliott Wave structure provides another layer of analysis.

The proposed short-term Wave 1 advances from 369 to 433.

That represents a gain of 64 points.

The stock then pulled back from 433 to 413, which is being interpreted as the short-term Wave 2.

This correction is considerably smaller than the long-term decline from 490 to 360, and that is exactly what would be expected when analyzing a smaller internal wave structure.

The short-term roadmap is:

Wave 1: 369 → 433

Wave 2: 433 → 413

Wave 3 target: 500–520

Confirmation: Break above 425

The key short-term level is therefore 425.

A break above 425 would provide the immediate bullish trigger for the short-term count.

Why is this level important?

The stock has already established a proposed Wave 1 high at 433, followed by a correction to 413. A move back above 425 would demonstrate that buyers are beginning to regain control of the short-term structure.

The proposed target following that breakout is 500–520.

That would take AVGO above the previous short-term Wave 1 high of 433, creating a new high and potentially confirming the transition into Wave 3.

The sequence would be:

369 → 433: Short-term Wave 1

433 → 413: Short-term Wave 2

425: Short-term breakout

500–520: Short-term Wave 3 target

The importance of this shorter-term count is that it could provide an earlier indication of whether the larger bullish structure is developing as anticipated.

The most interesting feature of this AVGO setup is the relationship between the two timeframes.

The short-term count is looking for a break above 425, followed by a potential move toward 500–520.

The long-term count is looking for a break above 476, with a much larger potential target of 1,170.

Those levels are not isolated from each other.

If AVGO breaks 425, the short-term Wave 3 could begin developing.

If that advance continues through 476, the larger long-term Wave 3 scenario would receive significant confirmation.

This creates a potentially logical progression:

413 holds

↓

425 breaks

↓

500–520 short-term Wave 3 target

↓

476 is reclaimed along the way

↓

490 previous long-term Wave 1 high breaks

↓

1,170 long-term Wave 3 target becomes relevant

The short-term structure could therefore serve as the first stage of the larger bullish roadmap.

The previous short-term Wave 1 high at 433 is another important level.

Although the immediate trigger is 425, a sustained move above 433 would provide stronger evidence that the short-term Wave 2 correction has ended.

Once AVGO exceeds 433, the market would be making a new short-term high.

That would strengthen the argument for the projected 500–520 Wave 3 target.

It would also bring the stock closer to the much more important long-term resistance levels around 476 and 490.

This is why the short-term count is worth watching closely.

A successful short-term Wave 3 could potentially develop into the early stages of the larger long-term Wave 3.

The previous long-term Wave 1 high at 490 remains one of the most important levels on the chart.

A move above 476 would provide the first major long-term confirmation.

A move above 490 would provide even stronger confirmation because AVGO would be establishing a new high beyond the previous Wave 1 peak.

Once the stock is above 490, the larger Elliott Wave structure would have significantly fewer obstacles from the previous corrective cycle.

The projected 1,170 target could then become the dominant long-term objective.

Again, the market would still need to develop the internal structure required to reach that target.

The current analysis provides two complementary Elliott Wave scenarios.

Wave 1: 150 → 490

Wave 2: 490 → 360

Breakout confirmation: 476

Previous high: 490

Potential Wave 3 target: 1,170

Wave 1: 369 → 433

Wave 2: 433 → 413

Breakout confirmation: 425

Potential Wave 3 target: 500–520

The short-term and long-term counts therefore provide a sequence of increasingly important milestones.

425 is the immediate short-term trigger.

433 is the short-term Wave 1 high.

476 is the key long-term breakout.

490 is the previous long-term Wave 1 high.

500–520 is the short-term Wave 3 target.

1,170 is the larger long-term Wave 3 target.

AVGO is presenting a potentially powerful Elliott Wave setup on two different timeframes.

The long-term count identifies Wave 1 from 150 to 490, followed by Wave 2 from 490 to 360. If the stock breaks 476, the proposed long-term Wave 3 target is 1,170.

At the same time, the short-term structure identifies Wave 1 from 369 to 433, followed by Wave 2 from 433 to 413. If 425 breaks, the proposed short-term Wave 3 target is 500–520.

The significance of the setup comes from how these two counts can potentially connect.

A short-term breakout above 425 could initiate the next smaller impulsive advance. If that move develops into a sustained rally and eventually pushes through 476 and then 490, the larger long-term Wave 3 interpretation would receive much stronger confirmation.

The key numbers are:

Short-term Wave 2 low: 413

Short-term breakout: 425

Short-term Wave 1 high: 433

Short-term Wave 3 target: 500–520

Long-term Wave 2 low: 360

Long-term breakout: 476

Long-term Wave 1 high: 490

Long-term Wave 3 target: 1,170

For AVGO, 425 is the immediate trigger, while 476 is the much more important long-term confirmation level. If both break in sequence, the current Elliott Wave structure suggests that the stock could be transitioning from a corrective phase into a much larger bullish impulse, with 1,170 representing the major long-term Wave 3 objective.