Supermicro Stock Price Levels to Watch After Recent Slump | Global News Avenue

Ultramicrocomputer (SMCI) Shares were higher in pre-market trading on Tuesday following yesterday’s news that the stock would be selling off. Removed from Nasdaq 100 Index and reports that the embattled server maker is exploring ways to raise funds.

The stock has had a volatile year, rising to a closing high of $119 in March. Artificial Intelligence (AI)– Demand plummeted to around $18 in mid-November on concerns about a potential Nasdaq delisting After accounting anomalies delayed financial reporting.

Over the past month, Super Micro has hired a new auditor and obtained Application for extension is until February 25thbut its value has lost nearly a quarter in the past five trading days as investors assess the company’s prospects.

The stock rose 2% to around $34 in recent premarket trading.

Below, we take a closer look at Supermicro’s chart and apply technical analysis Identify important price levels to watch.

October gap filling

Microcomputer shares initially came under selling pressure last week after nearly tripling from last month’s lows, recouping losses from late October gap.

Recently, the sell-off intensified and the stock closed decisively below 50-day moving average on Monday. this Relative Strength Index (RSI) The indicator fell below 50 for the first time since late November, confirming that price momentum is waning.

Let us point out the important support and resistance A level that is likely to attract investor interest.

Major support levels to watch

A follow-on sell-off could send Supermicro shares down to around $26, a level that could hit near support on the chart. Contrary to the trend The stock price peaked in early November sell off.

one break down A move below this level would open the door to a retest of the $18 level. This location on the chart is likely to attract buying interest near last month’s highlighted location swing lowespecially if other index signal simultaneously oversold Stock condition.

Key resistance levels to monitor

After recovering from current levels, investors should watch the stock’s reaction to the $39 area, where the stock could encounter selling pressure near $2. trough September formed on the chart.

Finally, if a more optimistic move is made, the stock price could climb to around $50. Investors who have bought on the recent dips may consider investing in horizontal line Compare the lows of early August with merge has been on the stock’s broader chart throughout most of October downtrend.

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