Supermicro shares rose over 10% on Friday, logging their best one-day performance since early December, and are expected to remain in focus at the start of the week.
The stock closed above its 50-day moving average on Friday, with the highest trading volume in over a week. Investors should monitor key support levels around $26 and $18, while also watching crucial resistance levels near $39, $50, and $63.
The company’s shares ended last year with a 7% gain, but had previously surged more than four-fold between January and March before slumping as much as 85%. However, CEO Charles Liang has stated that postponed filings will be completed by February 25, easing concerns about potential delisting.
A recent surge in Microsoft’s plans to spend $80 billion on data centers that power artificial intelligence may also have boosted sentiment for server maker Supermicro. The company’s shares jumped 10% on Friday, snapping a five-session losing streak and marking their best one-day performance since early December.
Technical analysts note that the stock has been trading within an orderly descending broadening formation since mid-July, but closed above its 50-day moving average on Friday. Key support levels to monitor include $26, while crucial resistance levels near $39, $50, and $63 are also worth watching.
Investors should keep a close eye on these key price levels as the stock continues to move forward. The company’s recent surge has raised hopes for further gains, but caution is still advised given its volatile past.
Source: https://www.investopedia.com/watch-these-supermico-price-levels-as-stock-pops-after-volatile-year-8769472