Protective Put Support Zone & Gap FillAVGO – Breakdown Below HVL, Gap Fill Toward 320, Protective Put Support Zone
AVGO is trading in a high-volatility, momentum-driven downside phase , following a clean breakdown below the HVL. The move marks a clear regime shift, as price exited a tight transition zone and accelerated lower with conviction.
The downside was well signaled by sustained put-side pressure over multiple sessions, with price repeatedly rejecting from the 50 EMA . Once HVL failed, downside momentum expanded rapidly, consistent with a retail-driven move rather than a controlled dealer-defended range.
From an options structure perspective, protective put positioning now defines the next meaningful downside reference. Current positioning shows the next major protective put support clustered around 320 , which also aligns with a clean gap-fill level on the chart.
This makes 320 a dual-confluence area:
technical gap fill
protective put floor where dealer hedging dynamics may begin to dampen downside momentum
Until that zone is reached, price is effectively moving through thin structure, where volatility expansion and sharp intraday swings should be expected.
Key levels & structure:
Below HVL → bearish regime confirmed
50 EMA → repeated rejection, trend continuation signal
320 → primary downside target & potential stabilization zone (gap fill + protective puts)
Any stabilization or bounce attempts are more likely to occur only after interaction with the 320 area, not before.
