March 21 Chart of the Day - Super Micro Computer
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Super Micro Computer (SMCI) is making headlines once again this year, but this time with positive news. Several analysts have issued upgrades, raising their price targets for the stock. While this may offer little comfort to long-term investors who endured the past year's volatility, it’s certainly a welcome development for those who entered the market more recently.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical approach to assess key levels and potential next moves for the stock.
We have featured over 450+ Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $122.90 split-adjusted all time highs (ATHs) back in 2024 price fell in dramatic fashion before seemingly finding a bottom just below $20.
With little to no previous price history at ATHs price can go through what we like to call a "discovery phase" to create new structure.
In this scenario, price seemingly sped through the discovery phase and quickly faded back down towards previous and familiar price structure bypassing nearly all previous support/resistant levels. Many attribute this to their regulatory issues.
Price recently bounced back up to the $65 area attempting to break its torrid down trend before fading again back down near $35.
These are all valid price action movements, though they remain unpopular among investors.
Weekly Chart
On the weekly chart we can see where price set its ATH before quickly dropping back down the past year.
Why then when a company makes ATHs can price quickly drop back down?
For a variety of reasons including maybe this was a case of traders and investors taking some profits off the table.
Nonetheless, it’s evident that for over three years, price consistently formed higher highs and higher lows—signaling an uptrend—until that trajectory suddenly and sharply reversed.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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