SMCI Breakout

٢٠ يونيو

I posted a bearish idea on SMCI earlier in the week, based on a resistance level I had around 928, but also included a bullish path because if that level didn't hold the break above could result in a quick move back to the $1,022 area.

Here's another chart with a more bullish perspective. Elon announced plans for SMCI to collaborate with Dell and NVDA to work on infrastructure for Grok. As long as stocks continue to hold up, this is yet another reason for the market to pump semis and particularly SMCI. NVDA is sitting at ATH while SMCI is over $300 off ATH.

As for the chart, we have a descending trendline breakout that held on a retest and it's approaching a recent double top around $970. This is the most critical area for more to the upside for now. If it's able to break above, it could provide a nice long opportunity on a retest, or it might not retest for quite some time. There is great potential for another long leg up on SMCI. I'm still questioning the validity of this rally, but that doesn't really matter. If we keep pumping, calls should be the play until something changes.