SMCI: The trigger for the next rally! (D&W charts)

7月15日

The SMCI chart presents a compelling case for bullish potential, highlighted by significant bullish patterns on both the daily and weekly timeframes. On the daily chart, SMCI is forming an ascending triangle, a bullish continuation pattern. This pattern is characterized by rising lows supported by an ascending trendline, while the price faces resistance at $972.44, which is its most important resistance level. The consistent formation of higher lows suggests increasing buying pressure. Recently, the price has closed near this resistance level, indicating a potential breakout. If the price successfully breaks and closes above $972.44, it would signal a strong bullish continuation. However, a fall below the ascending trendline could indicate a possible reversal or a phase of consolidation.

On the weekly chart, SMCI exhibits a pennant pattern, another bullish continuation signal that forms after a significant price move. This pattern is marked by a period of consolidation with decreasing volatility, bounded by converging trendlines. The price action is currently testing the upper boundary of this pennant, suggesting a potential breakout. A break above this pattern would confirm the continuation of the bullish trend, likely leading to a substantial price increase. Conversely, failure to break above the upper trendline and a drop below the lower boundary could indicate a more pronounced pullback or extended consolidation phase.

Overall, SMCI shows strong bullish tendencies supported by the ascending triangle on the daily chart and the pennant pattern on the weekly chart. Both patterns suggest further upward movement if key resistance levels are broken. Traders should monitor these levels closely for a confirmed breakout to validate the bullish outlook. Failure to break these resistance points might lead to short-term consolidation or pullbacks to support levels.

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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.

“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore

All the best,
Nathan.