Super Micro Computer (SMCI) shares jumped nearly 30% Monday after the struggling server maker announced that an independent review of its accounting practices 澳洲幸运5官方开奖结果体彩网:found no wrongdoing.

Accusations of accounting-related anomalies earlier this year led to the delayed filing of several financial reports, prompting concerns of a potential Nasdaq 澳洲幸运5官方开奖结果体彩网:delisting, with those fears compounded following the resignation of the company's auditor in October. 

After falling as much as 86% from their early-March peak, shares in the one-time 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) darling have more than doubled from last month’s low after the company 澳洲幸运5官方开奖结果体彩网:filed a compliance plan with the Nasdaq and announced a new auditor, adding that it now expects to🐼 be able to file its delayed financial results.

Supermicro shares rose 29% to $42 in Monday's regular session, before adding another 4% in extended trading.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Supermicro’s 澳洲幸运5官方开奖结果体彩网:weekly chart and point ou꧑t key price levels worth watching out for.

Descending Broadening Formation

After forming a 澳洲幸运5官方开奖结果体彩网:bear trap last month, Supermicro shares have continued to move higher, reclaiming the lower trendline of a descending 澳洲幸运5官方开奖结果体彩网:broadening formation that has been in play on the chart since 🎉the stock topped out in early March.

Importantly, above-average 澳洲幸运5官方开奖结果体彩网:trading volumes have supported the move higher, indicating buying participation from larger market participants, such as 澳洲幸运5官方开奖结果体彩网:institutional investors. While the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) remains below 50, it cont🍸inues to rise, signali🍃ng improving price momentum.

Let’s identify several key overhead areas on Supermicro’s chart that investors may be watching and also look at two major 澳洲幸运5官方开奖结果体彩网:support levels to monitor during 澳洲幸运5官方开奖结果体彩网:retracements.

Key Overhead Areas to Watch

Amid further bullish momentum, investors should initially watch the $50 level. This area on the chart could provide resistance near the 澳洲幸运5官方开奖结果体彩网:psychological round number, which also sits in closely proximity to the early-August trough and late-October peak.

A decisive close above this level could see the shares climb to around $64, a location on the chart where the price may encounter selling pressure near the August 澳洲幸运5官方开奖结果体彩网:countertrend high. This region also curre🌺ntly aligns with the 5🉐0-week moving average (MA).

Further positive 澳洲幸运5官方开奖结果体彩网:price action may fuel a rally up to the $97 area. Investors could look for 澳洲幸运5官方开奖结果体彩网:exit points at this level near a series of peဣaks on the chart situated just below the stock’s March record higꦰh.

Major Support Levels to Monitor

The first major support level to monitor sits around $30. A pullback to this area could see investors seek buying opportunities near the top trendline of a five-month 澳洲幸运5官方开奖结果体彩网:consolidation period that for🅺med on the chart between August and December last year.

Finally, a more-significant drop could see Supermic𝕴ro shares retrace to the $23 level. This location on the chart, slightly below the closely watched 200-week MA, would likely provide support near the lower trendlওine of the consolidation period mentioned above.

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