Super Micro Computer (SMCI) shar🦂es are likely to remain in focus this week after gaining more than 4% on Friday and ahead of a stock split that takes effect next week.

The stock is looking to build on momentum after losing around half its value over the past three months, in part due to 澳洲幸运5开奖号码历史查询:disappointing fiscal fourth qu𝓰arter results and accusations of "澳洲幸运5开奖号码历史查询:accounting manipulation" by short seller Hindenburg Research. The company’s shares, which undergo a 10-for-1 澳洲幸运5开奖号码历史查询:stock split after the closing bell on Sept. 30, are still up about 60% since the start of the year amid expectations for booming 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) server demand to house chips that power t༺he ✃technology. 

Looking ahead, the company also stands to benefit from being a first mover in liquid cooling rack systems, 澳洲幸运5开奖号码历史查询:👍according to the analysts at Needham, prompting the investment firm to initiate coverage of the stock last week with a “buy” rating and $600 price target, representing 31% upside from Friday’s close of $457.2🍎7.

Below, we take a closer look a Super Micro’s chart and turn to 澳洲幸运5开奖号码历史查询:technical analysis to identify crucial p🐼rice levels to watch out for.𝕴

Shares Trade Within Descending Broadening Wedge

Since setting their record high in early March, Super Micro Computer shares have oscillated within a descending 澳洲幸运5开奖号码历史查询:broadening formation, with the stock’s price tagging both trendlines on several occasions over the past six months to establish key 澳洲幸运5开奖号码历史查询:support and resistance levels.

Although the 50-day 澳洲幸运5开奖号码历史查询:moving average (MA) crossed below the 200-day MA to form an ominous 澳洲幸运5开奖号码历史查询:death cross earlier this month, buyers have𓆏 recently defended the wedge’💫s lower trendline. 

What’s more, Friday’s rally occurred on the highest 澳洲幸运5开奖号码历史查询:trading volume in nearly two weeks, potentially setting the stage for further bullish pri🀅ce momentum.

Looking ahead, investors should keep an eye on several important lower and higher price levels that stand out on Super Micro Computer’s char♍t.

Key Lower Chart Levels to Watch

Firstly, it’s worth monitoring the $357 level. This area on the chart finds a 澳洲幸运5开奖号码历史查询:confluence of support from a 澳洲幸运5开奖号码历史查询:horizontal line joining the early August 2023 and January 2024 peaks with the broadeniꩵng wedge’s lower trendline.

A failure to hold this level could see the shares revisit lower support around $230, a location where investors may look for buying opportunities near three troughs that formed on the chart between August and❀ Oc📖tober last year.

Important Higher Chart Levels to Watch

Upon a move higher, investors should monitor the $700 level, a region currently aligning with the 200-day MA where the shares may run into selling pressure near a trendline connecting a range of 澳洲幸运5开奖号码历史查询:price action between February and early August.

A breakout above this level and the wedge’s upper trendline could fuel a rally to $975, an area where sellers may look to offload shares near the mid-April 澳洲幸运5开奖号码历史查询:countertrend peak and three 澳洲幸运5开奖号码历史查询:swing highs that formed on the chart in ꦉMay, June, and July.

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