Quantum computing company IonQ Inc. (IONQ) saw its shares drop more than 11% on Tuesday following the release of two money manager’s most recent 13F filings.
A 13F filing details quarterly equity holdings of institutional investors managing over $100 million, required by the SEC.
For the most recent quarter, Softbank and Paul Ruddock’s Lansdowne Partners reported that both had closed their position holdings in IONQ. The sales resulted in Softbank closing their position of 1.59 million shares while Lansdown Partners’ holdings dropped from 1.3 million to 1.0 million shares.
The decline in IONQ holdings follows a volatile three months of trading in the quantum computing industry stocks.
Shares of IonQ, Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) have seen a wild six-month period as each of these companies have rallied as much as 500-700% following developments in the quantum computing industry.
IONQ shares saw their shares hit an all-time high of $55 in January following a rush of investor interest in quantum computing companies. The interest was sparked by news from Google of the development of its newest “Williow” chip, the company’s most advanced breakthrough in quantum calculations.
Since then, investors have seen quantum computing stocks go through massive volatility following comments from NVIDIA’s CEO – Jensen Huang – that a realistic timeline for quantum computing stocks was 10-15 years away.
For the last month, shares of IONQ have been trading at round-numbered support from the $40 level as the stock’s key 50-day moving average has shifted to a neutral trend. That neutral trend suggests that the stock price is more at-risk of further declines.
Today, shares of IonQ dropped below $35 as momentum is shifting into a short-term bearish trend.
In addition, the stock is breaking below its bottom Bollinger Band. Bollinger Bands are a measure of volatility for stocks. Breaking below one of these bands forecasts and increase in bearish volatility.
The combination of bearish momentum and volatility forecasts lower prices for IONQ over the next two-week period.
Investors should expect that the stock will find another level of round-numbered support at $30 with a high likelihood that IonQ shares will test $25 for the first time since November.
IONQ shares remain in a long-term bull market trend with a target price of $50.
