Here’s the Easy Way to Forecast Rigetti Computing’s next 20% Move

Share of Quantum Computing company Rigetti computing dropped more than two percent on Thursday as the stock battles with a short-term technical trend and price support.

Rigetti stock has spent the last week holding the $12.50 price as support following a 20% from last week’s highs.  The stock has seen explosive volatility since early January when Jensen Huang made comments regarding the timeline for quantum computing to be effective on January 7.

The stock has been a textbook example of how stocks under $20 react to certain price levels as support and resistance.

Rigetti’s initial drop from $20 found support at $7.50 followed by a fast and aggressive rally to $15 where price resistance resulted in another reversal.  From there, the stock dropped to another $2.50 increment to $12.50 where it has struggled to hold for the entire week.

Now the stock is starting to see pressure from another technical measure, it’s 20-day moving average.  This short-term trendline is referred to as the “Trader’s Trendline” since short-term traders take their buy or sell cue from moves above or below it.

Rigetti’s 20-day moving average has cast resistance on the stock for the last three days, creating a “must win” for the stock to avoid a volatile move to $10.

The situation draws out an easy situation that any investors can read.

A break below $12.50 will result in a 27% drop to $10 where the stock is likely to find another round of buying the dip interest ahead of another move higher.

A move above the stock’s 20-day moving average at $13.20 will result in a technical buy signal that targets Rigetti’s next 33% rally to $17.50 followed by another 15% move higher to the stock’s recent highs at $20.

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