Supermicro shares experienced a significant jump of 12% on Wednesday following the submission of its delayed financial reports. The company managed to meet the filing deadline just in time to avoid being delisted from the Nasdaq. This positive news came after a series of four consecutive trading sessions with losses leading up to the deadline. The stock found support around the key 50% Fibonacci retracement level on Tuesday, which helped pave the way for the surge in price.
Investors are advised to keep an eye on key resistance levels on Supermicro’s chart, particularly around $63, $75, and $96. Additionally, it is important to monitor major support levels near $48 and $38. The recent surge in Supermicro’s stock can be attributed to the submission of its delayed financial reports, which helped ease investor concerns about potential delisting from the Nasdaq.
Supermicro shares have seen a decline of more than 40% in value over the past year due to accounting and corporate governance allegations that led to delayed regulatory filings. However, the stock has rebounded by 68% since the beginning of the year, driven in part by a positive business update that highlighted an optimistic revenue outlook. This growth was fueled by increasing demand for Supermicro’s products to support AI infrastructure.
On the technical side, Supermicro shares experienced a sharp uptrend on increasing volume after breaking out from a falling wedge pattern. The stock encountered selling pressure just above the 200-day moving average but found support at the 50% Fibonacci retracement level, leading to the recent surge in price.
Looking ahead, investors should pay attention to three key overhead areas where the stock may face resistance, as well as major support levels during potential retracements. Supermicro shares closed Wednesday’s session at around $51, marking a 12% increase. The stock saw a 5% decline in after-hours trading.
The first overhead area to watch is around $63, where the shares may encounter selling pressure near the August countertrend peak. A close above this level could push the stock towards $75, with potential profit-taking from investors who accumulated shares at lower prices. Further buying above $75 could lead to a move towards $96, where the stock may face resistance near previous peaks.
In terms of retracements, investors should monitor the $48 area, where the stock may find support from a trendline connecting previous price action. A deeper pullback could see the shares revisiting support around $38, where investors may seek entry points.
Disclaimer: The information provided is for informational purposes only and does not constitute investment advice. The author does not own any of the mentioned securities.
Como se escribió en la fecha de este artículo, el autor no posee ninguno de los valores mencionados.