Broadcom Inc. (AVGO) is currently positioned at a pivotal point within its 12th Phase of the 18-Phase Adhishthana Cycle, and the setup looks increasingly favorable for a potential breakout, provided one critical level is breached.

Where We Are in the Cycle

Broadcom is now in its 6th full Adhishthana Cycle, having completed five full 18-phase cycles since it was listed. The current cycle began in July 2023, and so far, the stock has shown a strong 91% alignment with the Adhishthana Principles, a proprietary framework that forecasts stock behavior through cyclical analysis, incorporating both quantitative signals and behavioral archetypes.

Key Cycle Highlights So Far

Fig. 1 Broadcom Inc Key Phases (Source: Adhishthana.com)

Phase 2: The +33% Move

Fig. 2 Broadcom Phase 2 (Source: Adhishthana.com)

In Phase 2, Broadcom traded sideways for precisely 38 trading days, a consolidation period that aligns with our model's expected duration for this phase, known as the Move of Sankhya. Following this, the stock surged 33% in what we call the Rally of Buddhi, a powerful breakout driven by strong market sentiment. This rally set a bullish tone for the cycle.

Phase 7: The -21% Move

Fig. 3 Broadcom Inc Phase 7 (Source: Adhishthana.com)

In alignment with cyclical expectations, Phase 7 witnessed a 21% decline across exactly 7 red bars, a textbook example of the "The Arthah & Artharthi correction," which often flushes out speculative positions and resets valuations.

Phase 9: The +60% Move

Fig. 4 Broadcom Inc Phase 9 (Source: Adhishthana.com)

Phase 9 was a defining moment, with Broadcom rallying 60% and achieving an all-time high in what I call the Supreme Wave Breakout. This surge shattered the resistance zone, or Cakra Cycle, formed between Phases 4 and 8, confirming Broadcom's adherence to the Adhishthana Principles. The rally highlighted the stock's strength in the semiconductor market and its robust market position.

Phases 10–11: The -44% Move

Fig. 5 Broadcom Inc. Phase 9-11 (Source: Adhishthana.com)

(Note: If you look closely at Fig. 5, you’ll notice that the price initially rallied from Phase 9 to the midpoint of Phase 10 before collapsing. The entire structure resembles a mountain, which I refer to as the ‘Himalayan Formation.’)

Since late January 2025, Broadcom has faced a 44% pullback, a typical correction following the Himalayan ascent of Phase 9. This decline found support at the Level of Nirvana i.e., $162.43, a key price point that acts as a magnet during sell-offs in our model and makes the valuations attractive.

What to Expect Going Forward

After breaching the Level of Nirvana in Phase 11, we observed a wave of buying driven by its attractive valuation. Broadcom is currently in Phase 12 of the Adhishthana Cycle, a critical transitional stage. The key level to watch is $249.59 i.e., the high of Phase 10 (C10). If Broadcom breaches and closes above this level, Phase 13, which begins on June 17, 2025, could usher in extreme bullishness. Our clients began increasing their exposure to AVGO in early April, and we expect this momentum to continue through August 2025, supported by the stock's renewed strength in the tech sector.

James Gornick