Supermicro Stock Soars: Key Levels to Watch After Successful Nasdaq Filing

Shares of Super Micro Computer (SMCI) soared 12% on Wednesday after the company submitted its overdue financial reports. This came just in time to avoid being delisted by Nasdaq, easing investors’ worries. Nasdaq confirmed that Supermicro met all filing requirements, bringing relief to those concerned about missing deadlines.

Over the past year, Supermicro shares have faced challenges, dropping more than 40% due to accounting issues and corporate governance claims. Despite this, the stock has rebounded strongly, gaining 68% since the beginning of the year. This surge follows an optimistic business update that highlighted increasing revenue from a rising demand for AI infrastructure.

Let’s take a closer look at the current technical situation with Supermicro’s stock. The shares recently found support at the 50% Fibonacci retracement level, which indicates a potential rebound point. This level proved crucial after four consecutive days of losses leading to the filing deadline.

Here are the important price levels investors should keep an eye on:

• **Resistance Levels:** The first area to monitor is around $63, where the stock may face selling pressure. A successful breakout above this level could push shares up to $75.
• **Next Target:** If Supermicro can surpass $75, there’s potential for the stock to climb to around $96, an area that has previous peaks.

On the flip side, it’s important to note the support levels in case of retracements:

• **Initial Support:** Watch for support around $48, which is just above the 50% Fibonacci level. This area has shown stability in past price movements.
• **Further Support:** If the stock drops even lower, $38 is a critical level to watch. This area coincides with significant historical price points.

In summary, Supermicro has bounced back sharply but remains on a complex journey. Investors should stay alert to both the resistance and support levels that could dictate the stock’s next moves.

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