Long way to go from here

29 ก.ค.

Current situation: UUS100:SMCI is currently at support level.


Potential scenario: If tomorrow's earnings do not meet expectations, the stock could drop to around $450 in a heartbeat.


Why?

1. The movement that started on 4.03.2024 appears to be an ABC correction, and the stock is currently in wave C of that correction.

2. In an ABC correction, the most common Fibonacci level for wave C is when

Wave C = Wave A = 1 = $446

3. Other indicators, such as MACD, are also indicating a downward trend as expected.

The WavesInvesting indicator is also pointing to the same level as the Fibonacci ratio for its lower channel line.

However, if the earnings turn out to be very good, we may see support at the current level.

Simple question for you: support or down the water slide we go?