Is the SMCI trade back on? – June 27, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to look at Super Micro Computer ( NASDAQ: SMCI ).
SMCI ( NASDAQ: SMCI ) has been in a well-defined downtrend, versus the 21-day and the 50-day, for the last couple of days. Since April it broke under the 50-day moving average and has really had trouble getting above and staying above.
But not today, we got a nice push through the 50-day moving average and it came on higher than average volume. I can see pretty clear short-term support right around that $811.00 range. And I can see that this has broken through a clear downward-sloping trendline.
And again, it came on higher than average volume. So this looks like a pretty good breakout here. It is not breaking out to new highs, but definitely trying to break out of the choppy sideways trend that it’s been in.
Now, in terms of short-term price targets, I’d probably look up here at around $1,000.00, or just above for swing traders. If it can get above that $1,015.00 level, then I would expect Super Micro ( NASDAQ: SMCI ) to come back up here right around 1,100.00.
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