Analyst sets SMCI stock price target that will confirm next rally
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Super Micro Computer (NASDAQ: SMCI), a key player in high-performance computing and AI infrastructure, has experienced significant market fluctuations this year. The stock surged sharply in January 2024, primarily due to its inclusion in the S&P 500. However, this upward momentum was followed by a substantial correction, exacerbated by a notable drop in gross margins to 11.2% in quarter four (Q4 FY2024), down from 17% the previous year. Despite these challenges, analysts are increasingly optimistic about SMCI’s future, with some predicting that the stock is on the brink of a major rally. Notably, trading expert TradingShot has identified SMCI as being in a strong position for significant upward movement following a period of consolidation. The analyst has set a bullish price target of $2,000, which could mark the beginning of the next major rally. This optimistic forecast is supported by technical indicators that suggest the stock is bottoming out after retracing from its earlier highs, signaling a resilient uptrend. Current stock performance and signs of recovery Currently trading at $628.80, SMCI is demonstrating a robust recovery. The stock has marked its strongest one-week green candle since May 22, 2023, a positive indicator following a brief dip below the 50-week moving average (1-week MA50, blue trend-line). SMCI stock price analysis chart. Source: TradingView This dip was largely driven by market concerns over a potential economic slowdown. However, SMCI’s rebound within the critical two-year ‘higher lows zone’, which began in July 2022, shows the stock’s resilience and long-term bullish potential. Technical analysis and key levels to watch According to the analysis, the 100-week moving average (1-week MA100, green trend-line), located at the bottom of the ‘higher lows zone’, has consistently served as a critical support level during this recovery. As long as SMCI remains above this level, the long-term bullish outlook is…
Filed under: News - @ August 17, 2024 12:26 pm