SMCI Is it still a buy following the Q3 revenue and profit cut?

Super Micro Computer Inc (SMCI) cut its third-quarter revenue and profit expectations due to delays in customer spending, amplifying worries of a pullback in AI-linked investments and pushing its shares down -16% pre-market.

It has been 6 months since we issued a major buy signal on SMCI (November 07 2024, see chart below):

Even tough our $122.50 long-term Target still stands, we have to move it later on the time-line until the economic outlook shows the positive signs of 2024 again.

Until then, we have a more medium-term Target of $80.00, which is on the 0.786 Fibonacci retracement level, the same level the price hit in March 2019, following the first U.S. - China Trade War in 2018.

As you can see, the recovery patterns in terms of 1W RSI between the two fractals are almost identical.

Right now the stock is basically consolidating within the 1W MA50 (blue trend-line) and 1W MA200 (orange trend-line), waiting for the next round of expansion news for the market, to break above the Triangle.

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