Supermicro Stock Whipsaws After Saying It’ll Meet Filing Deadline—Watch These Price Levels

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Supermicro Stock Whipsaws After Saying It’ll Meet Filing Deadline—Watch These Price Levels

Source: TradingView.com

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.

Meeting that deadline will help the company to avoid being delisted and shore up investor confidence in the stock.

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.

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

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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

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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

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. The company’s shares have fallen around 6% in the last month but have

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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

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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

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last Friday, potentially also forming an

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bottoming pattern in the process.

Importantly, the stock registered its highest

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in recent trading session since early December, indicating larger market participants positioning ahead of this afternoon’s update.

While the

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edged lower after today’s fall in regular trading, the indicator still confirms bullish price momentum with a reading just below the

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threshold.

Let’s apply

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to identify important overhead areas where the shares could run into

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and also point out key

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worth watching during pullbacks.

The first overhead area to track sits around the

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$50 level. This region on the chart could provide resistance near the inverse head and shoulders’

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, which also lies in close proximity to the downward sloping

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.

Story Continues

A decisive

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above this price would confirm the pattern, which could propel a move to around $70. Investors may look to offload shares around this level near the February 2024 pullback low and late-April trough.

Follow-through buying could see the shares rally to the $96 level, an area that may provide resistance near a trendline that connects a series of

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on the chart between February and July last year.

During

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, investors should keep tabs of the $26 level. Supermicro bulls could look for buying opportunities in this region near the low of the inverse head and shoulders’ right shoulder.

Finally, a more significant downside

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in the stock could see the shares revisit lower support around $18. Investors who try to time market bottoms may seek

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near last year’s November low, which also doubles and the inverse head and shoulders’ head.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 

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 for more info.

As of the date this article was written, the author does not own any of the above securities.

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