Super Micro Computer (SMCI) saw a sharp rally this week following its announcement of a compliance plan submitted to the SEC to prevent delisting from the Nasdaq. Shares surged 16% during regular trading on Monday and an additional 25% in after-hours trading after the filing. This positive momentum reflects renewed investor confidence in the company’s ability to address regulatory concerns.

The compliance plan outlines a clear path for the submission of delayed filings and demonstrates progress toward aligning with Nasdaq requirements. If approved, the plan could stabilize SMCI’s stock, which has been under significant pressure, dropping 65% over the past three months. This decline followed a year of explosive growth, where shares gained over 300% before retreating. Despite the recent rally, SMCI is down over 20% year-to-date in 2024.

From a technical perspective, the stock’s recent price action suggests a potential reversal from its downward trend. The heavy volume accompanying Monday’s rally indicates strong buying interest. Immediate support is seen near $20, while resistance lies at $25.

The chart shows the 15-minute price movement of Super Micro Computer, Inc. (SMCI) on NASDAQ. The stock is currently trading at 21.54 USD, reflecting a 1.89% gain for the session. After a period of consolidation, the stock exhibited strong bullish momentum, rallying from the 17.25 USD support level to an intraday high of 23.87 USD, a significant upward move. However, a sharp pullback followed, with prices retreating back to the 21.50 range, indicating possible profit-taking or resistance at the upper levels.

The RSI (Relative Strength Index) was elevated, reaching 68.49, approaching overbought territory during the rally. This suggests strong buying pressure but also signals caution, as the stock may face increased volatility or a potential correction if it sustains overbought levels. Currently, the RSI has cooled slightly, reflecting the recent pullback.

From a technical perspective, the immediate support lies around 20.50 USD, near the lower consolidation zone from earlier in the session. A break below this level could signal further downside toward 19.00 USD. On the upside, resistance is evident at the intraday high of 23.87 USD. A decisive breakout above this level, accompanied by strong volume, could indicate the potential for continued bullish momentum.

In summary, SMCI’s current price action suggests a volatile but bullish trend. Traders should monitor RSI levels and price behavior around key support and resistance levels to assess near-term opportunities.