Tight Range in Super MicroSuper Micro Computer enjoyed a major surge in mid-2023 thanks to the AI boom. Now after a period of consolidation, some trend followers may expect further upside.
The first pattern on today’s chart is the series of lower lows between August and late October, followed by higher lows in November and December. That high basing formation may suggest buyers are active near the current range.
Second is the falling trendline along the peaks of October and November. SMCI ended last week near that potential resistance. Will traders be watching for a breakout?
Third, the 50- and 100-day simple moving average (SMAs) have flattened after a sharp rise. That suggests the intermediate-term trend has gotten neutral. However, the stock is above the SMAs. Remaining here could drag them higher and create more of an uptrend. (Especially with the broader market advancing.)
Finally, Bollinger Bandwidth in the lower study shows a volatility squeeze as moves compress. That may also open the door to price expansion.
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