Chart of the day

Where do we stand fundamentally?

Super Micro Computer, Inc. (SMCI) has recently faced several significant issues. On September 20, 2024, the company announced that it had received a non-compliance letter from Nasdaq due to a delay in filing its annual report for the fiscal year ending June 30, 2024. This non-compliance does not immediately affect SMCI's Nasdaq listing, and the company has 60 days to address the issue or submit a compliance plan

SMCI is bouncing off the strong support 390 with a hammer candlestick. A break above 520 is needed for a run to 790 resistance. Invalidation of this immediate upside extension could come upon a break below 390.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle is 320. As said this extension higher could lead to a 2000 target in the medium-term to long-term if the SMCI breaks above 1228. Reversal however and an invalidation is possible and a new swing-down retrace to 100 only if we see a break below 320.

_{Try a long trade entry with a narrow stop loss below 320 to target 570 and higher.}