Sell signal week 7: caution after last week's surge
Super Micro Computer stock slips 5.6% as distribution phase deepens
Sell signal week 7: caution after last week's surge
Our view last week
A 24.5% surge in a single week changes the tone of the Sell signal on Super Micro Computer: the stock breaks higher off a clean double bottom in the 25 area, with 72% of trading on the buy side. In our Super Micro Computer technical analysis the sellers are losing ground, but the picture stays cautious - money flow is still negative and the price-action read flags a distribution phase. The short, open for six weeks, remains only slightly in the money.
This week's summary
After last week's 24.5% surge, Super Micro Computer stock stays on edge: this week the stock gives back 5.6%, and the distribution phase deepens, with the ADX slipping to signal a trend losing conviction. On the daily chart though, the price has already bounced 11% off the 20-day moving average, in the 28 area. The Sell signal, live for 7 weeks, remains up 6.8% since entry, but our Super Micro Computer stock technical analysis doesn't favor opening a fresh short here.
IQS Phase
68
in tension
Signal Strength
8
decline losing steam
Sizing
MINIMUM
Ranking
#77 / 138
US stocks
Trade P&L %
+6.76%
from signal to date, no stop loss
Rank position
ranks 77th among the 138 sell signals for US stocks in our ranking, with a signal strength of 8 out of 100.
Sector context
SectorGrowth Tech
Benchmark ETFXLK
Sector regimeweak phase
Performanceweekly -0.30% · monthly -5.53%
SMCI belongs to the growth tech sector (reference ETF XLK). The sector is classified weak phase according to our weekly reading.
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