Broadcom, one of the leading players in the market for custom-designed AI chips, released its quarterly results on last Wednesday. The company’s figures were mostly in line with or slightly exceeded expectations, while its forecast for the current quarter proved to be rather conservative, reaching only the lower end of the consensus range. However, the lack of positive surprises was partially offset by the chipmaker’s longer-term outlook, which projects a further uptick in demand for AI and anticipates that revenue from the AI chip business will double by 2027 and 2028. The strong long-term growth outlook continues to support the company’s favorable fundamentals, so we are maintaining the stock on our Equity Top Pick List.
Palo Alto Networks, a leading player in the cybersecurity market, released its quarterly results last Tuesday after the market closed, reporting strong AI-driven demand, similar to that of its competitors. The figures for the quarter just ended exceeded analysts’ estimates, while the forecast for fiscal year 2027 also surpassed expectations in terms of key financial metrics. This strong momentum is likely to continue in the coming quarters, as the spread of AI-enabled cyberattacks and the increasingly widespread use of AI agents are driving up demand for security services. We therefore continue to view the fundamental outlook for this stock — which is also included on our Equity Top Pick List — as strong, and we are raising our fair value estimate from $330 to $400.
U.S. indices have remained in a correction phase because we have not yet seen a decisive sell-off. As long as they do not rise above the levels that have defined the minor downtrend or sideways phases that began two weeks ago, the opportunity for short positions may remain. A reversal pattern has formed on the German index, which could be confirmed by a lower high reached in the coming days. The Stoxx 600 index is also just missing a decisive sell-off day, as the pattern would be suitable for opening a short position. The index tracking emerging markets, however, has hit the 68.75 level; until we see a decisive reversal with a significant drop, the possibility of an uptrend remains.
The index continued to trade sideways between 7,610 and 7,813 last week. The main uptrend line has not yet been threatened; however, if the upward gap at 7,610 were to close and the most recent swing low were to be broken, a reversal pattern with a lower high could form. However, if the price were to break out upward, the next resistance level after 7,813 would be at 8,125.
Resistance levels: 7,813; 8,125; 8,438
Support levels: 7,188; 6,875; 6,563; 6,250; 5,938.
This situation could very well lead to another short signal, but for that to happen, the price would need to fall below the 28,906 level. In that case, it would be wise to manage risk above the 29,688 level, while the downside target could be around the previous lows, near 27,344. On the other hand, if the red downtrend line were to break upward, the all-time high could be reached, and the short opportunity would be pushed back much further.
Resistance levels: 30,469; 31,250.
Support levels: 28,906; 28,125; 27,344; 26,562.
The correction following the new high has not yet brought about any lasting change. The series of rising swing lows and highs has not yet been broken. As soon as we see a change in this pattern, a structural shift could occur, offering a chance for a reversal. The formation of a lower high could also help this process, but for that to happen, the price would need to rise in the coming days while remaining below the 3,043 level.
Resistance levels: 3,043; 3,125.
Support levels: 2,891; 2,813; 2,734; 2,656; 2,578; 2,500.
The index is trading below a recent swing low, but the 25,781 level has held. A break below this level could open up more downside potential. On the upside, the natural resistance level around 26,563 is significant. If the minor rally seen over the past two days fails to hold well below the 26,563 level, it could trigger a short-term sell signal. If trading remains below 26,563, the short opportunity may persist; however, if the index reaches this level again, a different scenario would need to be considered.
Resistance levels: 25,781; 26,562.
Support levels: 23,438; 22,656; 21,875; 21,093; 20,313.
The price has merely pulled back from the uptrend and even reversed from a lower high, but we didn’t see a decisive sell-off last week either. A signal suggesting a sustained, trend-like decline could emerge if the trend indicator were to turn upward. In that case, the 640 support level could also be breached. As long as the red downward trendline continues to push the price down, the movement is likely to remain in a corrective phase.
Resistance levels: 671.88; 687.5.
Support levels: 625; 594; 578; 562; 546.
Since it did not hit a new swing low, the series of rising lows remained intact, and thus there was no sell-off day. Friday’s rally, however, broke the curve out of its deadlock and signaled a day suggesting a trend-like rise. A break below the thin green trendline would be a bad sign; for that to happen, the price would need to close below 67.19. Above 68.75, the resistance level at 71.88 could be reached.
Resistance levels: 68.75; 71.88.
Support levels: 62.5; 59.38; 56.25; 53.13; 50.
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