Super Micro Computer
Here we go! After a short spate of selling, shares of Super Micro Computer (SMCI) are on the run again after JPMorgan initiated coverage on the shares with an “Overweight” recommendation.
The addition of JPMorgan to the Wall Street Analyst coverage of the stock represents the “Discovery” that I talk about in one of my recent videos on the stock. Check it out here…
That said, SMCI shares are trading 9% higher this morning after falling 30% from its recent highs.
Shares are breaking back above their 20-day moving average – what I refer to as the “Trader’s Trendline,” which should lead the stock to another round of new highs above $1,250.
AMD
AMD (AMD) is another stock tied-up in the China Chip War headlines this morning, but the shares are trading higher.
What’s up?
AMD shares started the day almost 5% lower, but are now trading up more than a percent.
And it all comes down to a simple line.
The stock has spent the last three days bouncing around the $175 level as shares appear to be searching for support. The price action makes absolute sense as this is where the current 50-day moving average is positioned.
The 50-day is one of the most powerful trendlines when it comes to support and resistance for a stock.
This means that AMD is facing a critical test.
A break below the 50-day will increase selling pressure and take the stock to $150. A successful test of the 50-day will draw technical buyers into the shares driving it towards $200.
It really is that simple.
Tesla
Tesla (TSLA) shares, along with other EV manufacturers, are trading lower today in the wake of an industry downgrade.
This morning, analysts from Mizuho downgraded Tesla shares and lowered their target price to $195.
Nick and I have been expecting downgrades to Tesla as the company continues to run into a number of fundamental headwinds.
Check out my latest video on Tesla’s trials here and what you should do about it.
In addition to Tesla, Mizuho also downgraded Nio (NIO) and Rivian (RIVN) shares.
Bonus note for you, Lucid Motors (LCID) shares are trading higher as the company announced a deal to sell $1 billion of a newly created series of convertible preferred stock via private placement.
The announcement had LCID shares trading 15% higher in the pre-market, but those gains quickly turned to 3% losses as it appears the market was quick to figure out this lifeline move.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.