SuperMicroComputer.....Massive rally ahead?
Hello traders,
Today I want to show you SuperMicroComputer, the AI company.
Since the stock bottomed out at $8.50 in October 2019, it has seen an impressive rally to $357.- in early August.
After that, it fell to $226 on October 31 as a result of disappointing earnings. It has since moved sideways, crossing a couple of trendlines and showing a high-volume breakout above one of them.
Remember! Volume is one of the most important "indicators" for an ongoing breakout, whether bearish or bullish!
Overall, the consolidation after the high @ $357.- looks like a "triangle", but not everything looks like one!
Anyway! The green trend line is the next to be overcome with clear, the price above. If so, the next short-term target is @ $305.- and above @ $317.50! Here the triangle is completed and a massive breakout with high volume to $472.- to $596.- is next!
Why $472? The widest open between the blue trend lines measures a distance of $144! So, measured from the break of the upper blue trend line, the target is $472.
In the bullish case, there is much more potential for the coming month, and if so, the stock can be "THE" outperformer in 2024!
But; where to save the trading capital!
I think a good level will be @ $350.- area, the start of the current rally on December 08!
Have a great week .....
Please ask or comment as needed.
Trading based on this analysis is at your own risk.
Today I want to show you SuperMicroComputer, the AI company.
Since the stock bottomed out at $8.50 in October 2019, it has seen an impressive rally to $357.- in early August.
After that, it fell to $226 on October 31 as a result of disappointing earnings. It has since moved sideways, crossing a couple of trendlines and showing a high-volume breakout above one of them.
Remember! Volume is one of the most important "indicators" for an ongoing breakout, whether bearish or bullish!
Overall, the consolidation after the high @ $357.- looks like a "triangle", but not everything looks like one!
Anyway! The green trend line is the next to be overcome with clear, the price above. If so, the next short-term target is @ $305.- and above @ $317.50! Here the triangle is completed and a massive breakout with high volume to $472.- to $596.- is next!
Why $472? The widest open between the blue trend lines measures a distance of $144! So, measured from the break of the upper blue trend line, the target is $472.
In the bullish case, there is much more potential for the coming month, and if so, the stock can be "THE" outperformer in 2024!
But; where to save the trading capital!
I think a good level will be @ $350.- area, the start of the current rally on December 08!
Have a great week .....
Please ask or comment as needed.
Trading based on this analysis is at your own risk.