Home
News
- 1 SMCI stock rose sharply, breaking multiple barriers.
- 2 Bulls are accumulating and are unwilling to pause the rally.
Super Micro Computer Inc. (NASDAQ: SMCI) stock price is producing a vertical rally on the charts. The chart structure shows a strong uptrend, and the stock has been climbing up the stairs of glory for the past few months. SMCI stock is near $300 and looking to surpass it in the following sessions.
SMCI stock has consolidated and traded below $100 in the previous months. When the price broke the neckline and escaped $100, a massive short-covering move and a fresh uptrend beginning led to the stock’s vertical rally, post which the stock has gained solid momentum.
From the start of 2023, SMCI stock jumped more than 300%, showing a massive bounce on the charts. The charts tell that the heavy traction gained by buyers and bullish candles indicates the investors’ long buildup activity.
SMCI stock showed buying pressure without any retracement or correction over the past few months, which is very rare for any stock. The stock has rewarded its investors with an enormous return in record time, resulting in the sharp rise in demand.
Super Micro Computer Inc. provides high-performance server technology services to cloud computing data center, Big Data high-performance computing, and Internet of Things embedded markets. Its solutions include server storage blades, workstations, full-racks networking devices, and server management software.
The firm follows a modular architectural approach, providing flexibility to deliver customized solutions. More than half of the firm’s revenue is generated in the United States, with the rest coming from Europe, Asia and other regions.
At press time, SMCI stock is trading at $295.38 with an intraday gain of 0.45% on a bullish chart. Moreover, the intraday trading volume increased by 2.21% to 3.757 Million, and a market cap is $15.504 Billion.
Daily Charts Show SMCI Stock Rallying
On the daily charts, SMCI stock showed a doji candlestick in the Friday session and declined from $300 on which the sellers have maintained a strong grip. Moreover, the sellers’ volume also increased, indicating that buyers find it challenging to sustain above $300.
The buyers have the advantage of strong momentum and are strong enough to beat the bears. The need to surpass $300 to extend the rally.
The RSI curve persisted to rise toward the overbought zone near 78, showing positive divergence on the charts, suggesting a strong chart structure.
The MACD indicator also formed a bullish crossover and showed green bars on the histogram, which suggests strength on the charts.
Conclusion:
Super Micro Computer Inc. (SMCI) stock has been riding the uptrend and persisted to outperform from the past months. Moreover, the chart structure suggests a further rise in the following sessions.
Technical Levels:
Support Levels: $280
Resistance Levels:$300 and $315
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
