Supermicro Stock Whipsaws After Saying It’ll Meet Filing Deadline—Watch These Price Levels
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Supermicro shares whipsawed in extended trading on Tuesday after the troubled server maker said it expects to submit its delayed 2024 financial reports by the Nasdaq’s Feb. 25 deadline.
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Meeting that deadline will help the company to avoid being delisted and shore up investor confidence in the stock.
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The stock broke out above the top trendline of a descending broadening formation last Friday, potentially also forming an inverse head and shoulders bottoming pattern in the process.
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Investors should monitor important overhead areas on Supermicro’s chart around $50, $70, and $96 while also watching key support levels near $26 and $18.
Super Micro Computer (SMCI) shares popped 8% in extended trading Tuesday after the troubled server maker said it expects to submit its delayed 2024 financial reports by the Nasdaq’s Feb. 25 deadline to avoid being delisted.
This development overshadowed the company’s underwhelming preliminary second-quarter results. It also shored up investors’ confidence in the stock, laying to rest concerns that the server maker may not meet the exchange’s cutoff date after a plethora of accounting and corporate governance issues were unearthed during the second half of last year.
Its been a wild ride for the Supermicro stock which lost nearly 10% during regular trading hours Tuesday and began after-hours trading in the red before whipsawing. The company’s shares have fallen around 6% in the last month but have surged more than 35% in February as of Tuesday’s close in anticipation of this update. However, the stock has lost nearly half its value over the past year.
Below, we break down the technicals on Supermicro’s chart and identify important price levels that investors may be watching.
Supermicro shares broke out above the top trendline of a descending broadening formation last Friday, potentially also forming an inverse head and shoulders bottoming pattern in the process.
Importantly, the stock registered its highest volume in recent trading session since early December, indicating larger market participants positioning ahead of this afternoon’s update.
While the relative strength index (RSI) edged lower after today’s fall in regular trading, the indicator still confirms bullish price momentum with a reading just below the overbought threshold.
Let’s apply technical analysis to identify important overhead areas where the shares could run into resistance and also point out key support levels worth watching during pullbacks.
The first overhead area to track sits around the psychological $50 level. This region on the chart could provide resistance near the inverse head and shoulders’ neckline, which also lies in close proximity to the downward sloping 200-day moving average.
