Rigetti Computing Stock Under Pressure: Is a Bounce Likely at This Support Level?

RGTI Stock Analysis

Rigetti Computing (RGTI) and other quantum computing names saw heavy selling again on Monday.  Shares of Rigetti and D-Wave Quantum Inc. (QBTS) both lost more than 30% as headlines stoked investors’ fears.

Over the weekend, Mark Zuckerberg joined NVIDIA’s CEO in forecasting that meaningful quantum computing power was still more than a decade away.  Zuckerberg added that “we're going to have pretty smart AIs even before that.” In a nod to companies like META Platforms (META) and NVIDIA (NVDA).

Rigetti and D-Wave have benefitted from parabolic increase in interest towards quantum computing after Google’s announcement of its “Willow” quantum computing chip in December.

Since then, both stocks have sallied significantly as investors seek to get well-ahead of the quantum curve.

Adding to the pressure, D-Wave announced on Friday that the company was going to sell up to $150 million in common shares.  That move would dilute the current shareholders of the company.  Early stage companies often take advantage of price increases to raise capital to invest in their research and development.

Rigetti stock dropped through two significant price levels on Monday.

First, the stock closed below $7.50.  This price had held the stock as resistance less than a month ago.  It is often the case that resistance levels turn to support for a stock.

Second, Rigetti shares breached their 50-day moving average.  A stock’s 50-day trendline usually attracts investors using technical analysis and other quantitative models.  Rigetti’s 50-day moving average currently sits at $6.40.

Investors may want to pay attention to the $5.00 level as this price would be the last significant price to step in as support at this time.

Rigetti stock remains above its longer-term bullish trendlines trendlines, but it should be noted that the company is still in a speculative “Discovery” mode.

RGTI Stock Analysis

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