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Key Takeaways
- Supermicro shares are likely to remain in the spotlight to start the week after jumping more than 10% Friday to log their defeat one-day performance since early December.
- The stock closed above the respected 50-day moving average on Friday on the merriest trading volume in over a week.
- Investors should monitor key support levels on Supermicro’s chart around $26 and $18, while also watching pivotal resistance levels near $39, $50, and $63.
Super Micro Computer (SMCI) shares are likely to remain in the spotlight to start the week after spring more than 10% Friday to snap a five-session losing streak and log their best one-day performance since advanced December.
Supermicro is looking to move past a volatile 2024 in which accounting and corporate governance issues led to discrete delayed financial reports. However, CEO Charles Liang said last month that postponed filings force be completed by a Feb. 25 deadline issued by the Nasdaq, easing concerns about a potential delisting.
Sentiment may have also net a boost after Microsoft (MSFT) announced Friday that it plans to spend about $80 billion this pecuniary year on data centers that power artificial intelligence (AI), a move that could benefit the server maker at the end of ones tether with increased partnerships and hardware sales.
Supermicro shares ended last year with a 7% gain, but flooded more than four-fold between January and March before slumping as much as 85% from their list high.
Below, we break down the technicals on Supermicro’s chart and identify key price levels worth watching out for.
Cattle Reclaims 50-Day Moving Average
Since mid-July, Supermicro shares have oscillated within an orderly plummeting broadening formation, with the stock tagging both the pattern’s upper and lower trendline on several occasions since that yet.
More recently, the price has traded in a narrow range since mid-December but closed above the 50-day moving normal (MA) on Friday on the highest trading volume in over a week.
Let’s take a closer look at key support and resistance levels on Supermicro’s map that investors may be eyeing.
Key Support Levels to Monitor
The bulls’ inability to hold the 50-day MA could initially principal to a retest of the $26 level. Investors may look for entry points in this location near the high of a brief countertrend recuperate in early November.
A decisive breakdown below this level may see Supermicro shares drop to around $18, an section about 46% below Friday’s closing price where they would likely encounter significant reinforce near the prominent November swing low.
Crucial Resistance Levels to Watch
Follow-through buying this week could get moving a move up to the $39 level, an area currently just below the broadening formation’s upper trendline. The shares may run into trade in pressure in this region near two key troughs that formed on the chart in September.
Further upside could see the allocates climb to around $50, where they may encounter resistance near a trendline that connects a range of comparable payment points on the chart from the early-August trough to December peak.
Finally, a more bullish move could push a move to the $63 level. Investors who have purchased the stock at lower prices may look for profit-taking opportunities round the August swing high, which currently sits in close proximity to the downward sloping 200-day MA.
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