The Key Takeaways
- Super Micro Computer stock rose on Monday morning after Nasdaq granted the company an extension for filing its annual report.
- Last week the stock moved within a pennant, which is a charting pattern that indicates a continuation in its recent upward impulsive movement.
- Investors should watch key overhead areas on Supermicro's chart around $50, $64, and $97, while also monitoring a major support level near $30.
Super Micro Computer’s (SMCI) stock rose in the early hours of trading Monday morning after the company said on Friday it received an extension from Nasdaq until the end of February to submit its delayed annual reports.
It comes after almost a week of the announcement. The company had named a new auditor and sent a compliance report to the stock exchange. There were growing concerns that the stock might be delisted because the firm did not file its annual report for 2024 in August, following several accounting and corporate governance problems.
Supermicro stated Friday that they expect to submit their annual report and the late report for the third quarter of the year by February 25, in order meet the requirements set forth by Nasdaq.
It is worth more than 50% on Friday, despite the fact that the share price dropped by around 65% from late October to mid-November.
We will examine Supermicro’s price chart in detail and apply technical analysis to determine important levels of prices that investors should be aware of.
Pennant Patterns Signals Continued Bullishness
Supermicro has staged an impressive recovery since its low last month. Its price is more than twice as high as it was in mid-November.
The bullish trend has been bolstered by above-average volumes, which indicate buying from the larger players in the market.
The stock has also recently consolidated in a pennant chart pattern, which signals that the recent upward impulsive movement of the stock will continue.
Three key areas in Supermicro’s chart are well worth watching. Also, a significant support level may be able to attract buyers during a pullback.
Keep an eye on these key areas of the sky
First, you should monitor the area around $50. The first overhead area to monitor is around $50.
The shares could reach $64 if they close over this level. On the chart, the area just below the downward-sloping moving 200 day average is where there may be resistance at the countertrend high of August.
The breakout of the trendline above a longstanding broadening formation may be followed by a subsequent rise to approximately $97. Investors should look out for potential selling opportunities near the peaks on this chart that were visible between April and Juli.
Interesting, the area roughly corresponds to a price target for a bars pattern. The pattern extracts the stock’s upward impulsive movement that preceded pennants and moves it away from the upper trendline of the pattern.
A Major Supporting Level that may Attract Buyer Interest
The shares could return to lower support around $30 if there is a wave of selling. If you are looking for entry points, look near a trendline which connects similar levels of the chart between August 2023 and November.
The lower trendline in the formation of a descending widening could provide support to the shares, depending upon the timing and magnitude of a decline.
Investopedia’s comments, opinions and analyses are intended solely as information. Read our warranty and liability disclaimer for more info.
According to the article, as of its date of publication, the author did not possess any of these securities.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
