Supermicro Stock Price Levels to Watch After Monday’s Near-30% Surge | Global News Avenue

Ultramicrocomputer (SMCI) Shares of the struggling server maker jumped nearly 30% on Monday after announcing an independent review of its accounting practices No wrongdoing was found.

Allegations of accounting-related anomalies earlier this year delayed the filing of several financial reports, raising concerns about a potential Nasdaq listing delistingthese concerns have become more serious as company executives have resigned auditor October.

The company’s shares fell after falling 86% from their peak in early March Artificial Intelligence (AI) Dear shares more than doubled from last month’s low after listing Submit a compliance plan It partnered with Nasdaq and announced a new auditor, adding it now expects to be able to file delayed financial results.

Supermicro shares rose 29% to $42 in regular trading on Monday and then rose another 4% in after-hours trading.

Next, let’s break it down technical in ultramicro Weekly chart and pinpoints key price levels worth watching.

Descending and widening formations

After formation bear trap Supermicro stock continued to move higher last month, reclaiming its downtrend line Expand formation This has been playing out on the charts since the stock peaked in early March.

Importantly, above average trading volume Support for an uptick indicates buying participation from larger market players, e.g. institutional investors. Although Relative Strength Index (RSI) Still below 50, it continues to rise, indicating improving price momentum.

Let’s identify a few key management expense areas on Supermicro’s chart that investors may be concerned about and look at the two main management expense areas support level Monitor during retracement.

Key overhead areas to focus on

Amid further bullish momentum, investors should first focus on the $50 level. This area on the chart may provide resistance nearby mental roundswhich is also immediately adjacent to the beginning of August groove and peak in late October.

A decisive close above that level could see shares climb to around $64, a level on the chart that could see selling pressure near August. Contrary to the trend High. This area is also currently aligned with the 50-week moving average (MA).

further positive price action A rebound towards the $97 area is likely. Investors can look for exit point That level is close to a series of peaks on the chart and just below the stock’s all-time high in March.

Major support levels to monitor

The first major support level to monitor is around $30. one pull back In this area, investors may look for buying opportunities near the five-month top trendline merge The period formed on the chart from August to December last year.

Finally, a deeper decline could send Supermicro shares back to the $23 level. This level on the chart is just below the closely watched 200-week moving average and may provide support near the lower trendline during the aforementioned consolidation period.

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