Super Micro Computer (SMCI) shares are likelꦫy to remain in the spotlight to start the week after jumping more than 10% Friday to snap a five-session losing streak and log their best one-day performance since early December.

Supermicro is looking to move past a volatile 2024 in which accounting and 澳洲幸运5官方开奖结果体彩网:corporate governance issues led to several delayed financial reports. However, CEO Charles Liang said last month that postponed filings will be completed by a 澳洲幸运5官方开奖结果体彩网:Feb. 25 deadline issued by the Nasdaq, easing concerns about a potential delisting.

Sentiment may have also received a boost after Microsoft (MSFT) announced Friday that it 澳洲幸运5官方开奖结果体彩网:plans to spend about $80 billion this fiscal year on data centers that power 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI), a move that could benefit the server maker through increas♏ed partnerships and hardware sales.

Supermicro shares ended last year with a 7% gain, but surged more than four-fold between January and March before 澳洲幸运5官方开奖结果体彩网:slumping as much as 85% from their record high. 

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Supermicro’s chart and ide🐟n🎃tify key price levels worth watching out for.

Stock Reclaims 50-Day Moving Average

Since mid-July, Supermicro shares have oscillated within an orderly descending 澳洲幸运5官方开奖结果体彩网:broadening formation, with the sto🍎ck tagging both the pattern’s upper and lower trendline on several occasi𝔉ons since that time.

More recently, the price has traded in a narrow range since mid-December but closed above the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) on Friday on the highest 澳洲幸运5官方开奖结果体彩网:trading volume in over a week.

Let’s take a closer look at key 澳洲幸运5官方开奖结果体彩网:support and resistance levels on Supermicro’s chart tꦑhat investors may be eyeing.

Key Support Levels to Monitor

The bulls' inability to hold the 50-day MA could initially lead to a retest of the $26 level. Investors may look for 澳洲幸运5官方开奖结果体彩网:entry points in this location near the high of a brief 澳洲幸运5官方开奖结果体彩网:countertrend rally in early November.

A decisive 澳洲幸运5官方开奖结果体彩网:breakdown below this level may see Supermicro shares drop to around $18, an area about 46% below Friday's closing price where they would likely encounter significant support near the prominent November 澳洲幸运5官方开奖结果体彩网:swing low.

Crucial Resistance Levels to Watch

Follow-through buying this week could propel a move up to the $39 level, an area currently just below the broadening formation’s upper trendline. The shares may run into selling pressure in this region near two key troughs that formed on the chart in September.

Further upside could see the shares climb to around $50, where they may encount𝔉er resistance near a trendline that connects a range oꦍf comparable price points on the chart from the early-August trough to December peak.

Finally, a more bullish move could drive a move to the $63 level. Investors who have purchased the stock at lower prices may look for 澳洲幸运5官方开奖结果体彩网:profit-taking opportunities around the August 澳洲幸运5官方开奖结果体彩网:swing high, which currently sits in close proximity to the downward sloping 澳洲幸运5官方开奖结果体彩网:200-day MA.

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