Supermicro Price Levels to Watch As Stock Soars Following Plan to Avoid Delisting | Global News Avenue

Ultramicrocomputer (SMCI) Shares surged in premarket trading on Tuesday after the troubled server maker said it had appointed a new auditor and submitted an audit report. Nasdaq Compliance Program to meet its listing requirements.

The company appointed BDO USA as its auditor late Monday and outlined in a compliance plan that it will now be able to complete its 2024 annual report and September quarterly report, without providing a specific date.

one-time stock Artificial Intelligence (AI) Darling has lost more than half its value last month as of Monday’s close delisting Concerns intensified in late October after the company’s former auditor resigned over a series of accounting issues. These issues have contributed to the company’s procrastination Nasdaq Financial Reporting Requirements.

The stock rose 25% to around $27 shortly before trading opened on Tuesday.

Next, we review Supermicro’s Weekly chart use technical analysis and identifies important price levels that investors may be concerned about.

RSI indicator moves out of oversold territory

Supermicro shares trend downward after peaking in early March Expand formation before falling below the pattern late last month.

The stock’s decline accelerated into early November, with the stock finding buying interest just below its closely watched 200-week moving average (MA) late last week.

Although Relative Strength Index (RSI) Readings hovering above 30 indicate bearish momentum in the price and the indicator has disengaged oversold This week, the stock is set to continue its gains following Tuesday’s gains.

Looking ahead, let’s identify three key overhead levels on Supermicro’s chart that could come into play during the recovery and discuss a major question support Areas that track whether a stock is long-term downtrend continue.

Key spend levels to monitor

Following Tuesday’s news-driven gains, investors should watch the stock’s reaction to the $30 level. Found one at this location confluence Resistance from a narrow top trendline merge The range formed on the chart from May to October last year and the lower trendline of the descending widening pattern.

Further buying could push the rally towards the $39 area, an area investors buying shares on the chart at lower levels can look for exit point Approaching September groove This happened before the big sell-off in October.

A more bullish move could see the stock revisit overhead resistance near $64, which could see selling pressure near the 50-week moving average and the upper trendline of the descending expansion pattern.

Key support areas to watch

period retracementinvestors should focus on whether buyers can hold the $23 level. This chart area could provide support near the 200-week moving average and the lower trendline of the narrow consolidation range mentioned above.

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