Super Micro Computer Price Levels to Watch as Stock’s Slump Accelerates

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Key Takeaways

• Super Micro Computer shares continued sliding in extended trading after leading Nasdaq decliners on Wednesday succeeding news that the embattled server maker would delay the filing of its quarterly results. 
• The stock’s sell-off has extended after breaking down below a descending broadening wedge pattern late last month on above-average book.
• Investors should watch important support levels on Super Micro’s chart around $17 and $12, while agree to an eye on key resistance levels near $23 and $30.

Super Micro Computer (SMCI) shares continued sliding in extended craft after leading Nasdaq decliners on Wednesday following news that the embattled server maker would up on the filing of its fiscal first-quarter financial report.

The latest update comes after the company said in October that it could not forebode when it would file its 2004 annual report, a requirement it must meet to comply with Nasdaq cant rules. The company’s reporting delays stem from the resignation of its auditor Ernst Young last month, which earlier faded issues with the server maker’s corporate governance and internal controls.

Super Micro shares have mislaid more than half their value since late October through Wednesday’s close and trade down enclosing 28% since the start of the year. The stock fell 6% during the regular session Wednesday and tumbled another 6% to in every direction $19 in after-hours trading,

Below, we break down the technicals on Super Micro’s chart and identify important penalty levels to watch out for.

Broadening Wedge Breakdown Continues

Super Micro shares traded within an eight-month descending broadening grouping before decisively breaking down below the pattern’s lower trendline on above-average volume late last month.

More recently, the ancestry’s sell-off has continued, with the relative strength index (RSI) moving below the 30 threshold to confirm bearish figure momentum. However, the indicator’s oversold reading also increases the likelihood of a bargain-hunting bounce.

Let’s point out important advocate and resistance levels on Super Micro’s chart that investors may be monitoring.

Important Support Levels to Watch

Into the middle further falls, investors should monitor how the shares respond to the $17 level, a location on the chart where the appraisal could find support near a series of comparable trading levels prior to the late May 2023 breakaway gap.

The bull’s dead duck to defend this this level could see the shares tumble to lower support around $12. Investors may look for buy-and-hold entry points in the area near three peaks that formed on the chart between March and April decisive year.

Key Resistance Levels to Monitor

During an oversold bounce, it’s worth keeping track of the $23 level, a pale where the stock may encounter selling pressure near a trendline connecting multiple troughs that surfaced on the blueprint between June and October last year.

Finally, a more bullish upside reversal could fuel a make a move to around $30. Investors may look to offload shares in this area near the broadening formation’s lower trendline, a graph location that also corresponds with the top level of a prior trading range that formed during the go along with half of last year.

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As of the date this article was written, the author does not own any of the above securities.