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Load the Boat on Super Micro Computer Shares?

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The saga continues over at Super Micro Computer (SMCI - Free Report) . This stock was a rock star, shooting up to a split-adjusted $122.90 earlier this year. Since then, accounting regularities have popped up, causing a lot of stress for investors. Their auditor resigned, and they were being threatened with de-listing from the NASDAQ. That’s about as bad as things can get for one of NVIDIA’s top customers.

Shares tumbled from those heights down to a $21.54 closing price on November 18th. But it was in the after-hours session when things came back to life. The company announced the appointment of BDO USA as an Independent Auditor and Filing of Compliance Plan with the NASDAQ. That caught the shorts off-guard overnight, and at the time of this writing on Monday night the stock had already jumped up over $30. With 100 million shares short, there will be fireworks.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Super Micro Computer’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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