At the start of May, SMCI prices escaped the consolidation zone ranging between $93 and $116. The stock price has been in a consolidation zone since the mid of March and after the release of the earning report for quarter 3, 2023.
SMCI stock breached the resistance level and formed an annual high of $213.41. The IT solution company has been on an uptrend since the start of 2023.
The super micro computer has recently teamed up with Applied Digital to deliver AI cloud services, which helped the price gain bullish momentum to break the minor consolidation zone of $159.40 and $170.
On May 22, Super micro computer launched a new Nvidia HGX rack scale and liquid cooling technologies to expand its data center offerings.
Many developments are going on around Super Micro Computer, which has led to price gaining bullish momentum and creating an all-time high.
Super Micro Computer Earning Report Q3
Super Micro Computer(SMC) reported net income of $85.85 Million on a revenue of $1.28 Billion which was lower than the last quarter. The earnings per share could not beat the consensus estimate of $1.71 and turned out to be $1.63, a surprise of -0.08(-4.57%).
SMC CEO stated that demand for gear that can handle generative AI is on the rise, which led to a component shortage and pushed some orders out of the quarter.
The issue has been addressed, and the company started producing and shipping back orders since April. The stock price has been reflecting the developments in the company and is still bullish.
Will SMCI Stock Price Reach $250 ?
SMCI price traded above 20,50,100 and 200-day EMAs, indicating a bullish momentum in the price. Chaikin money flow score is 0.27, showing strong bullish strength in the market. However, the RSI closed at 87.11, residing in the overbought zone, indicating a chance of a pullback.
The momentum is strong, and a trend reversal is far from the horizon. If the price stays below the $210 level, there is a chance of a pullback in the price to the $200 level.
SMCI price has been residing near the upper band of Bollinger since the start of May without even a pullback to 20-day SMA, indicating how strong is the momentum for the price. Currently, there is no confirmation for selling the stock.
Traders should wait for the SMCI price to retrace and form support before looking for bids, as the bullish rally has already taken off.
Conclusion
The market structure and price action for Super Micro Computer is highly bullish. The technical indicator suggests a chance of a pullback. Let’s see where the price might head from here after showing strong bullish momentum.
Technical Levels
Major support: $170 and $180
Major resistance: $220 and $240
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/26/super-micro-computer-smci-stock-price-creates-all-time-high/