Super Micro Computer Price Levels to Watch as Stock’s Slump Accelerates | Global News Avenue

Ultramicrocomputer (SMCI) shares continued to slide in after-hours trading on Wednesday following news that the troubled server maker would lead losses on the Nasdaq. Delay in filing first-quarter financial report.

The latest update comes after the company said in October it could not predict when it would file its 2004 annual report, which it must meet Nasdaq requirements Listing Rules. The company’s reporting delay stems from the resignation last month of its auditor Ernst & Young, an accounting firm that had earlier flagged problems with the server maker’s audit. corporate governance and internal controls.

Super Micro’s stock price has fallen by more than half from the end of October to Wednesday’s close, and is down about 28% since the beginning of the year. The stock fell 6% in regular trading on Wednesday and fell another 6% in after-hours trading to around $19.

Next, let’s break it down technical Go on Super Micro’s chart and identify important price levels to watch.

Wedge breakdown continues to expand

AMD stock price drops for eight straight months Expand formation before decisively breaking below the pattern’s lower trendline and moving above the average. volume Late last month.

Recently, the sell-off in the stock has continued, Relative Strength Index (RSI) A break below the 30 threshold confirms bearish price momentum. However, this indicator’s oversold Reading also increases the likelihood of a rebound on dips.

Let us point out the important support and resistance Levels on the ultramicro chart that investors may be watching.

Important support levels worthy of attention

In the event of further declines, investors should watch the stock’s reaction to the $17 level, which is where the price is likely to find support near a series of comparable trading levels leading into late May 2023. Break through the gap.

If the bulls fail to hold this level, the stock could fall to support around $12. Investors may seek buy and hold Entry points to three nearby areas peak It formed on the chart between March and April last year.

Key resistance levels to monitor

During the oversold rally, it’s worth watching the $23 level, where the stock could encounter selling pressure near the trendline connecting the multiple troughs seen on the chart from June to October last year.

Finally, more bullish upside potential reverse It could push the price to around $30. Investors may consider selling stocks in this area near the lower trendline of the expanding pattern, a chart location that also corresponds to the previous top. Trading scope This was formed in the second half of last year.

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As of the date of this writing, the author did not own any of the securities mentioned.