Shares in Super Micro Computer (SMCI) tumbled in extended trading Tuesday after the troubled server maker provided preliminary fiscal first-quarter results that came in below Wall Street expectations and said it’s unable to predict when it will file its 澳洲幸运5官方开奖结果体彩网:delayed 2024 annual report.

Tuesday’s updates follow a turbulent period for the company, which last week saw its shares plunge around 45% after its auditor, Big Four accounting firm EY, resigned. That move came as speculation continues to mount over 澳洲幸运5官方开奖结果体彩网:corporate governance challenges facin🎶g Super Micro amid allegations of accounting abnorm📖alities

Super Micro Computer shares fell 16% to $23.30 in after-hours trading Tuesday. The stock, once an up-and-coming 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) favorite th🌜at hit a high around $123 in Ma𝓰rch, was down slightly year-to-date through Tuesday's close.

Below, we take a closer look at the 澳洲幸运5官方开奖结果体彩网:technicals on Super Micro Computer’s 澳洲幸运5官方开奖结果体彩网:weekly chart꧋ and point out𝓡 major price levels to watch out for. 

Falling Wedge Breakdown

After trading within a six-month 澳洲幸运5官方开奖结果体彩网:falling wedge, Super Micro C🉐omputer shares broke down below the pattern late last 🃏month.

Importantly, the move occurred on the highest weekly volume since late August, suggesting strong selling conviction among larger market participants, such as 澳洲幸运5官方开奖结果体彩网:institutional investors and hedge funds.

Despite an early-November b🦩ounce, the stock sits poised to test lower levels again on Wednesday following the company’s latest updates.

Let’s identify several crucial 澳洲幸运5官方开奖结果体彩网:support levels and a key resistance area on Super Micro’s chart that investors ✨may ﷽be watching.

Crucial Support Levels to Watch

Firstly, it’s worth keeping an eye on the $23 level. This key location on the chart finds a 澳洲幸运5官方开奖结果体彩网:confluence of support near the 200-week moving average and a 澳洲幸运5官方开奖结果体彩网:trendline linking the lower level of a period of 澳洲幸运5官方开奖结果体彩网:consolidation in the stock between May and October last year.

A decisive 澳洲幸运5官方开奖结果体彩网:breakdown below this level opens the door for a move down to around $12, where the shares could attract buying interest near a series of highs in March and April last year that formed as part of the stock♕’s impulsive move higher from January to July.

Further selling could see the stock revisit lower support near $10, an area around 64% below Tuesday’s closing price where 澳洲幸运5官方开奖结果体彩网:buy-and-hold investors may seek entries around a range of💝 comparable trading levels that formed on the chart between🦩 November 2022 and April last year.

Key Resistance Area to Monitor

Upon an upswing, investors should monitor the $30 area. Investors who have purchased the stock at lower levels may look to 澳洲幸运5官方开奖结果体彩网:lock in profits near a trendline that connects the top of a prior 澳洲幸运5官方开奖结果体彩网:trading range on the chart fꦉrom August 2023 to early January this year.

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