SMCI.....Party over? An increase of $604.- a share in 2 month
Hello Traders,
SMCI has risen to $1077.87, which is shy below my cited target $1088 as announced at my last analysis!
It opened with a gap-up, but right after the first few minutes of trading, the stock changed direction and a "sell-off" started!
As a result, the closing price of the trading session was @ $803.32, a loss of 274.55 or about 25% from high to low!
The next thing to note is the fact of a "bearish engulfing! A sell signal from a candle stick perspective. But be patient by selling this stock!
More often than not, stocks that have risen this way, bring back buyers into the market, and they consider this circumstance as a good trading opportunity!
Interestingly, that the sell-off ended about the level of $800.-!
One of my followers give me the note, that "tons of $800.-calls" have been traded some days ago!
But! What to expect as next for SuperMicroComputer?
Well, after such an advance, a stock always needs to take a deep breath and should move sideways to cool down and consolidate this move! As a result of this, a week's long phase of even consolidation or correction could be next!
Observing the volume profile (right-hand side) give you the argument of weakening volume!
A message, probably it doesn't take much to send the stock lower!
But, observing the facts, Monday will give us brand-new information of what could be coming in the following trading week.
As long as the high is valid, the path for SMCI should be lower with targets at or around $666.09 to $611.93 to $574.07 at latest! If so to come, a wave 4 of minute degree have ended there, and the next is a rise to new ATH`s!
For shorthand, "the music stops playing"! Grap a chair, sit down and observe!
This is the best to do for next sessions!
Trader who have followed my trading idea, has earned an increase of roughly $604.- a share!
Not bad for a 2-months trade! Congrats!!!!!
Update comes after new facts!
Have a great week.....
Ruebennase
Please ask or comment as needed.
Trading based on this analysis is at your own risk.
SMCI has risen to $1077.87, which is shy below my cited target $1088 as announced at my last analysis!
It opened with a gap-up, but right after the first few minutes of trading, the stock changed direction and a "sell-off" started!
As a result, the closing price of the trading session was @ $803.32, a loss of 274.55 or about 25% from high to low!
The next thing to note is the fact of a "bearish engulfing! A sell signal from a candle stick perspective. But be patient by selling this stock!
More often than not, stocks that have risen this way, bring back buyers into the market, and they consider this circumstance as a good trading opportunity!
Interestingly, that the sell-off ended about the level of $800.-!
One of my followers give me the note, that "tons of $800.-calls" have been traded some days ago!
But! What to expect as next for SuperMicroComputer?
Well, after such an advance, a stock always needs to take a deep breath and should move sideways to cool down and consolidate this move! As a result of this, a week's long phase of even consolidation or correction could be next!
Observing the volume profile (right-hand side) give you the argument of weakening volume!
A message, probably it doesn't take much to send the stock lower!
But, observing the facts, Monday will give us brand-new information of what could be coming in the following trading week.
As long as the high is valid, the path for SMCI should be lower with targets at or around $666.09 to $611.93 to $574.07 at latest! If so to come, a wave 4 of minute degree have ended there, and the next is a rise to new ATH`s!
For shorthand, "the music stops playing"! Grap a chair, sit down and observe!
This is the best to do for next sessions!
Trader who have followed my trading idea, has earned an increase of roughly $604.- a share!
Not bad for a 2-months trade! Congrats!!!!!
Update comes after new facts!
Have a great week.....
Ruebennase
Please ask or comment as needed.
Trading based on this analysis is at your own risk.