September 26 Chart of the Day - Super Micro Computer, Inc.
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Super Micro Computer, Inc. (SCMI) makes computers that companies use as servers for websites, data storage and other applications, including AI algorithms. The company’s customers include major players in AI such as Nvidia, AMD and Intel.
The company's shares fell another 15% on Thursday after the Justice Department reportedly opened a probe into the company, which has been a major beneficiary of the artificial intelligence boom.
Their stock has fallen over 70% during the past three months due to a delay in filing an annual 10K financial report that was due at the end of August so we wanted to review their chart from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $1229 all time high (ATH) earlier this year price fell dramatically over the several months all the way down to the $386.30 earlier today.
Price is likely to continue falling in search of a bottom with next potential destination down around a previous major support/resistance level $357.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the slow and steady series of lower highs and lower lows.
Trading around $390s earlier today price may be attempting to reach its previous ATH set back in August 2023.
Price often, but not always, retests a breakout level but this is a rather extreme volatile move for sure.
While $357 is a potential downside target, technically speaking price could continue dropping much further below that level.
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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