A low priority update, because sometimes it’s nice to just do good old fashioned stock analysis rather than heavy macro stuff all the time.
SMCI is a stock I nailed for its basing pattern, and then of course sold too soon. Part of the issue was that gathering momentum players combined with excellent quarterly results for this AI enabler (as a key Nvidia supplier) drove it higher after I’d sold, not knowing what kind of news was in store for the company.
Currently it is on my watch list for buyback because the news has bolstered the fundamental view further (although SMCI does hold a caveat that Nvidia could and probably should over time add other vendors that could eat away at SMCI’s share of the business).
As to the chart, it looks like a bull flag, but the flag is forming from a lower high, which makes me think that the gap will fill around the 50% Fib retrace area but even better, possibly the 62% retrace area at around 600, with the daily SMA 50 (blue) rising toward that area. If this were to play out, it would probably do so in the coming weeks. Otherwise, if it takes off again sooner, I’ll have to wave bye bye I suppose.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
