Supermicro shares jumped 8% in extended trading on Tuesday after the company announced it expects to submit its delayed 2024 financial reports by February 25’s Nasdaq deadline, helping to avoid delisting and boost investor confidence.
The stock broke out above a descending broadening formation last Friday, potentially forming an inverse head and shoulders bottoming pattern. Investors should monitor overhead areas around $50, $70, and $96, as well as key support levels near $26 and $18.
Despite preliminary second-quarter results being underwhelming, the company’s shares have surged over 35% in February on anticipation of this update. However, they’ve lost nearly half their value over the past year. Key technical analysis points to important price levels that investors may be watching, including a potential breakout above $50 and resistance near the inverse head and shoulders’ neckline.
A decisive breakout above the psychological $50 level could propel shares to around $70, while follow-through buying could see them rally to the $96 level. However, during retracements, investors should keep tabs of key support levels such as $26 and $18.
Source: https://www.investopedia.com/supermicro-stock-whipsaws-after-saying-itll-meet-filing-deadline-watch-these-price-levels-10359877