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Super Micro Computer shares traded higher in early trading on Monday after the embattled server maker received a Nasdaq extension to file its delayed annual report.
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The stock consolidated within a pennant last week, a chart pattern that signals a continuation of the stock’s recent impulsive move higher.
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Investors should watch key overhead areas on Supermicro’s chart around $50, $64, and $97, while also monitoring a major support level near $30.
Super Micro Computer (SMCI) shares traded higher in early trading on Monday after the embattled server maker said late Friday that it had received an extension until February from the Nasdaq to file its delayed annual report.
The news comes almost a month after the company named a new auditor and submitted a compliance plan to the exchange as concerns grew that its stock could be delisted after the firm failed to file its 2024 annual report in August following a series of accounting and corporate governance issues.
Supermicro said Friday that it anticipates filing its annual report, along with its delayed report for the September quarter, by the Feb. 25 deadline to meet its Nasdaq exchange listing requirements.
Although the stock dropped around 65% between late October and mid-November, it has recovered most of those losses over the past month and now trades more than 50% higher on the year through Friday’s close.
Below, we take a closer look at Supermicro’s chart and use technical analysis to identify important price levels that investors may be watching out for.
Since bottoming out last month, Supermicro shares have staged a remarkable recovery, with the price more than doubling from its mid-November low.
Importantly, above-average volume has backed the bullish reversal, indicating buying activity from larger market players.
More recently, the stock consolidated within a pennant last week, a chart pattern that signals a continuation of the stock’s recent impulsive move higher.
Let’s point out three key overhead areas on Supermicro’s chart worth watching and also identify a major support level that may attract buying interest in the stock during pullbacks.
The first overhead area to monitor sits around $50. This level, about 14% above Friday’s closing price, could encounter selling pressure near the early August swing low and the upper level of a narrow consolidation period that formed on the chart throughout most of October.
A close above this price could see the shares climb to the $64 level, an area on the chart just below the downward sloping 200-day moving average where the price may run into resistance near the prominent August countertrend high.
