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Take a look at these super micro price levels when the shares drop according to weak results

Key Takeaways

  • The Supermicro shares fell 15% on Tuesday after the server manufacturer had achieved preliminary quarterly results that were far below the previous instructions.
  • The stock has been weakened in an ascending channel since October last year and during this time the upper and lower trend lines of the pattern have been a day.
  • Investors should monitor around 28 and 17 US dollars in the chart of Supermicro and at the same time observe the level of resistance of 50 and 63 US dollars.

Super Micro Computer (SMCI) parts that had dropped in extended trade on Tuesday after the server manufacturer had achieved preliminary results for the third quarter in the third quarter, which is far below the previous guidelines.

The company combined the downward revision of the delayed decisions for consumer products that have promoted sales into the current quarter, and increasingly increasingly concerns about slowing expenditure under uncertainty about the comprehensive tariffs of the Trump government.

The Supermicro shares fell 15% to $ 30.60 in the trade on Tuesday.

Before today's decline from After Hours, the Supermicro shares had so far increased by 18% this year. However, the share has determined considerable price fluctuations, since investors have assessed the recent challenges in connection with the company's accounting and corporate -government practices in the middle of a cloudy demand for the AI ​​infrastructure such as servers that were used in data centers in terms of AI infrastructure.

In the following we take a closer look at the Supermicro diagram and use technical analyzes to determine important price levels that are worth monitoring.

Ascending Channel in the game

Supermicro shares have weakened within an ascending channel since October last year and marked the upper and lower trend lines of the pattern during this time.

The share has recently gathered from the lower trend line of the canal, although the price has remained below the prestigious 50- and 200-day average values ​​in order to display a longer-term downward trend.

If the forecast relapse is back to the lower trend line of the Ascending Channel on Wednesday, we determine two decisive support levels that are worth monitoring monitoring, and also indicate the level of resistance that should be observed in potential swings.

Support the monitoring of levels

The first support level for surveillance is 28 US dollars. This area in the table, directly below the lower trend line of the rising channel, can attract the interest in purchase near the swing low in April and February, which also matches a small counter trend during the sharp sale of the share in early November last year.

The inability of the bulls to successfully defend this important technical level opens the door for a larger decrease in around $ 17. Bargain hunters can arrive in this area near November in November in November-V-shaped swing. Interestingly, this place is just below a projected downward target, which makes the previous step of the share within the rising channel lower and repositioned it from the Hochhoch this week to predict how a new trend looks lower when prices are irritating.

Observe resistance levels

During the upswing, the first interest in observation at the psychological level of $ 50. Those who bought stocks at lower prices can decide to give profits in this region near the early August trough of last year and in the upper area of ​​a consolidation period that corresponded to the diagram last October.

After all, a bull -free step could lead to Supermicro shares repeating higher levels with 63 US dollars. This area in the table would probably offer a resistance near a horizontal line that combines remarkable swing highs in August last year and February of this year.

The comments, opinions and analyzes that were expressed on investopedia are only used for information purposes. For more information, see our disclaimer for warranty and liability exclusion.

Until the date on which this article was written, the author has none of the above securities.

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