Share Super Micro Computer (SMCI) finished the week trading 5.6% lower on Friday. Friday's losses added to the rest of the week to put Super Micro Computer Incorporated 12% lower since trading started on Tuesday morning.
The move comes as investors continue to react to news that the company's accounting practices are being scrutinized and last week’s announcement that the company was delaying a filing with the SEC.
On Friday morning, analysts at JP Morgan lowered the stocks recommendation from a buy to hold.
This was the second Wall Street analyst to drop their recommendation on the stock this week. In addition, both JP Morgan and Barclays have dropped their target price on SMCI shares.
SMCI shares have spent the last two days trying to find support at a psychologically important round Number.
The $400.00 price has held sellers at Bay for Wednesday and Thursday as the stock has hitting technically oversold levels.
SMCI’s short term RSI reading is now below 30, which many traders use as an indication that the stock is set to rebound higher. It's important to remember that an oversold stock can always become more oversold before finding a bottom.
To close below $400.00 on Friday opens a new level of selling pressure I as volume is now increasing on the sell side.
Options traders are also very active on the 375 puts for the October expiration of SMCI options.
SMCI shares remain in a short-term bearish trend with a target of $350.
Shares of Palantir (PLTR) were a standout amidst a sea of red selling today as the shares closed higher by 0.5%.
There have been no headlines on Palantir to drive prices higher or lower this week, so the stock is reacting to its natural price trends and buyers’ interest in the AI service company.
Shares of Palantir had been bouncing across the $30 level, a site of significant Technical Support for the stock, for the last week.
The consolidation at $30 is helpful for when strength returns to the general market, as this will allow Palantir shares to slingshot above the 32.50 level on their way to a target of 37.50 dollars.
Shares of Palantir remain in a long term bull market trend with a price target of $50.
Microsoft (MSFT) shares sank by 1.6% on Friday as the stock heads towards a critical price test on Monday morning.
Microsoft is one of three of the Magnificent 7 stocks that is trading below its 200 day moving average.
In addition, the stock's 50 day moving average turned bearish in the beginning of August as shares dipped down below $400.
Today the stock is going to close $1.50 above that $400.00 price level.
A move below the $400.00 level will shoot Microsoft shares to $390. That price has acted as support in both early May and early August for the stock.
The failure of the $390.00 level to hold for Microsoft means that the company opens a new level of selling pressure.
Technical analysts and algorithms using technical analysis will increase their selling pressure, targeting a move to $375 for the Software/AI company’s stock.
Microsoft shares remain in a long-term bullish trend with a target of $500
Short-term, Microsoft shares are in a bearish trend with a target of $375.
