# AVGO Aug 27: Don’t Confuse a Bounce With a BreakoutBroadcom Inc.NASDAQ:AVGOBullBearInsights AVGO finally bounced. That’s good. But I’m not ready to call the chart bullish yet. The daily still looks damaged after the drop from the **$432 area**. Price has been making its way lower for weeks and is only now trying to stabilize around the mid-$350s. The daily RSI is near **33**, so the stock is definitely stretched on the downside. That’s probably part of the reason buyers showed up. But now look at the 15-minute chart. AVGO bounced hard from roughly **$350** and pushed all the way back toward **$361 to $362**. The problem is that the short-term RSI is already above **80**. So the daily looks oversold while the 15-minute chart already looks stretched in the opposite direction. That usually makes me slow down. I don’t want to chase AVGO just because it finally had a strong bounce. I want to see whether the bounce can survive resistance. The first area I’m watching is **$360 to $362.50**. That is where price is sitting now, and the GEX map is crowded around the same area. Above that, I have **$365**, then **$370**, and roughly **$372 to $373**. For me, $365 is the first real test. If AVGO gets above $365 and can stay there, then the recovery starts looking more serious. After that, $370 becomes the next level I care about. And I think $370 to $373 could be difficult. There is more GEX sitting there, and the chart still has plenty of overhead supply from the recent selloff. So if AVGO runs into that area and stalls, I wouldn’t be surprised. What would change my view is a clean hold above $370. That would tell me buyers are doing more than just covering shorts or reacting to an oversold chart. Then the stock starts repairing real damage. The downside is easier to read. If AVGO loses **$360**, I’m watching roughly **$358**. Below that, the GEX map gets heavier around **$355**. That is an important level for me. If $355 holds, the stock can still build a base. If $355 breaks, then **$352.50 and $350** come back into play. And below $350, I’d start watching **$347.50**. The part I like about AVGO tomorrow is the disagreement between the timeframes. The daily chart says the stock has been beaten up. The 15-minute chart says the bounce may already be getting crowded. The GEX map says price is sitting right inside a cluster of important levels. That usually means patience matters more than prediction. So for Aug. 27, I’m watching this very simply. If AVGO can hold above **$360** and work through **$365**, the bounce has room to continue. If it gets through **$370**, I start taking the recovery much more seriously. If $360 fails, I stop chasing. If $355 fails, I start thinking the bounce may have been nothing more than temporary relief. AVGO has finally found buyers. Now we get to see whether they actually have enough strength to take the chart back.