Key Levels to Watch in Super Micro Computer's Stock Price

**KEY TAKEAWAYS**

Super Micro Computer shares remain in focus after a 12% surge on Thursday, spurred by positive AI updates from Oracle and Broadcom in recent days.

Super Micro Computer shares have been trading within a symmetrical triangle since hitting their all-time high in early March.

With Thursday's significant share turnover, the highest since early May, investors should watch for a potential imminent breakout above the pattern.

A measured move following a breakout in Super Micro shares projects a price target of $1,512, while a breakdown could see support tested at $566.75 and $350.

Super Micro Computer (SMCI) continues to draw attention on Friday after its shares surged over 12% on Thursday, adding to a three-fold gain year-to-date. This surge is driven by optimism about AI-driven demand.

Oracle (ORCL) announced several large AI cloud deals on Tuesday, and chipmaker Broadcom (AVGO) reported record high AI product revenue on Wednesday. These developments are favorable for Super Micro, which provides specialized rack servers and other hardware essential for AI infrastructure.

**Symmetrical Triangle Forms on Super Micro Chart**

Super Micro Computer shares have been trading within a symmetrical triangle since reaching their all-time high in early March. The top trendline of the pattern and the 50-day moving average have provided significant resistance over the past month.

While a symmetrical triangle indicates a pause in price, a decisive breakout from the pattern often signals the start of a new trend or a continuation of the longer-term trend, especially if it occurs on above-average trading volume.

Given Thursday's jump with the highest share turnover since early May, investors should watch for a potential imminent breakout above the pattern.

**Post Breakout Price Levels to Watch**

If an upside breakout occurs, investors can use a measured move to project a price target. This technique is useful when a stock is near its record high with limited prior price action to reference.

To calculate this, measure the distance between the initial high and low of the symmetrical triangle in points and add that amount to the pattern’s top trendline. In this case, adding $642 to $870 forecasts a price target of $1,512. This suggests a possible area where the stock may face resistance, particularly if other technical indicators suggest overbought conditions.

Investors should also identify levels to watch if the stock breaks down from the pattern. Two key support areas to monitor include the 200-day moving average, currently at $566.75, and a horizontal line connecting several price peaks between August and January around $350.

Super Micro shares were down 2.8% at $847.00 in premarket trading on Friday, about 90 minutes before the opening bell.

**Trade on the Go. Anywhere, Anytime**

One of the world's largest crypto-asset exchanges is ready for you. Enjoy competitive fees and dedicated customer support while trading securely. You'll also have access to Binance tools that simplify viewing your trade history, managing auto-investments, viewing price charts, and making conversions with zero fees. Create an account for free and join millions of traders and investors in the global crypto market.