Supermicro Shares Surge 16% Following Upbeat Business Update
Supermicro Computer (SMCI) shares soared over 16% on Tuesday, continuing a significant rally sparked by the server maker's optimistic business update last week. The stock has experienced sustained buy-in on above-average volume after breaking out of a falling wedge pattern earlier this month.
Crucial Overhead Areas and Key Support Levels
Investors should monitor key overhead resistance levels at $70 and $96 on Supermicro's chart. These areas may encounter selling pressure. Conversely, crucial support levels should be watched for potential retracements, including $50 and $38.
Falling Wedge Breakout Signals Continuation
The breakout from the falling wedge pattern suggests a continuation move higher. The stock has experienced follow-through buying with accelerating gains in recent sessions. The RSI above 70 confirms bullish momentum but indicates potential overbought conditions, leading to possible short-term profit-taking.
Crucial Overhead Areas to Watch
- $70: Psychological level and trendline resistance from last year's February and April pullbacks.
- $96: Resistance near a series of peaks from February to July 2023.
Key Support Levels to Eye
- $50: Support near swing low in early August, upper range of October consolidation period, and December peak.
- $38: Trendline support connecting September trough and subsequent price points.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice.