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Shares of Supermicro rose nearly 30% on Monday after the server maker announced that an independent investigation of its accounting practices found no wrongdoing.
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The stock has reclaimed the lower trendline from a declining, widening formation that has been in play since the stock peaked in early March.
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Investors should keep an eye on key overhead areas on Supermicro’s weekly chart around $50, $64 and $97, while keeping an eye on key support levels near $30 and $23.
Supermicrocomputer (SMCI) shares rose nearly 30% on Monday after the struggling server maker announced it was conducting an independent review of its accounting practices no wrongdoing detected.
Allegations of accounting discrepancies earlier this year led to the delayed filing of several financial reports, raising concerns about a possible Nasdaq crisis. removal from the listwith those fears heightened following the company’s resignation accountant in October.
After falling as much as 86% from their early March peak, shares remain in the one-time range artificial intelligence (AI) sweetheart have more than doubled from last month’s post-company low submitted a compliance plan with the Nasdaq and announced a new auditor, adding that the company now expects to file its delayed financial results.
Supermicro shares rose 29% to $42 in Monday’s regular session, before adding another 4% in extended trading.
Below we break down the technical matters on Supermicros weekly chart and point out the key price levels worth keeping an eye on.
After forming a bear trap Last month, Supermicro shares continued to rise, regaining the lower trendline of a downtrend widening formation This has been going on since the stock reached a high on the chart in early March.
Important: above average trading volumes have supported the increase, indicating buying participation from larger market participants such as institutional investors. While the relative strength index (RSI) remains below 50 but continues to rise, indicating improving price momentum.
Let’s identify some key overhead areas on Supermicro’s chart that investors might be looking at, and also look at two key areas support levels during monitoring retracements.
Amid further bullish momentum, investors should initially look at the $50 level. This area on the map could see resistance near the psychologically round numberwhich is also near early August Through and peak at the end of October.
A decisive close above this level could see shares rise to around $64, a location on the chart where the price could experience selling pressure around the month of August. counter trend high. This region also currently corresponds to the 50-week moving average (MA).