Source: TradingView.com
Supermicro shares jumped nearly 30% Monday after the server maker announced that an independent review of its accounting practices found no wrongdoing.
The stock has reclaimed the lower trendline of a descending broadening formation that has been in play since the stock topped out in early March.
Investors should watch key overhead areas on Supermicro’s weekly chart around $50, $64, and $97, while monitoring major support levels near $30 and $23.
Super Micro Computer (SMCI) shares jumped nearly 30% Monday after the struggling server maker announced that an independent review of its accounting practices found no wrongdoing.
Accusations of accounting-related anomalies earlier this year led to the delayed filing of several financial reports, prompting concerns of a potential Nasdaq delisting, with those fears compounded following the resignation of the company’s auditor in October.
After falling as much as 86% from their early-March peak, shares in the one-time artificial intelligence (AI) darling have more than doubled from last month’s low after the company filed a compliance plan with the Nasdaq and announced a new auditor, adding that it now expects to be able to file its delayed financial results.
Supermicro shares rose 29% to $42 in Monday’s regular session, before adding another 4% in extended trading.
Below, we break down the technicals on Supermicro’s weekly chart and point out key price levels worth watching out for.
After forming a bear trap last month, Supermicro shares have continued to move higher, reclaiming the lower trendline of a descending broadening formation that has been in play on the chart since the stock topped out in early March.
Importantly, above-average trading volumes have supported the move higher, indicating buying participation from larger market participants, such as institutional investors. While the relative strength index (RSI) remains below 50, it continues to rise, signaling improving price momentum.
Let’s identify several key overhead areas on Supermicro’s chart that…
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