bull pennant on the weekly + uptrend baseline in RSI & KDJ
$Super Micro Computer (SMCI.US)$ I'm doing all this on my phone hence the terrible lines but you get my point. see my comment for daily chart analysis same story.
also disclaimer i moved my SMCI shares on IBKR that's why they're not showing my recent buy orders. but you can see i did pretty well here buy dips and sell on tops
1 criticism is the weekly MACD has not curled yet it needs to curl a little bit
just need good earnings and guidance + stock split to send this violently out of the breakout
measured move out of the breakout is 1400
you give it a margin you're still expecting something like 1200 which is nearly 50% from current prices
don't forget a single day early this year had 35%+ a single fucking day
i know this is no longer a small cap it's a mid cap going into large cap now so maybe 35+% day is over but i won't be surprised if it sees +15% on a single day when the above-mentioned catalyst events happen
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aims to identify stocks with rock solid growth fundamentals with 10x potential. also dabbles a little bit in trading
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MomentumPython1337 OP : this is the daily chart
the same big picture essentially and you can see the RSI is almost at the same oversold levels as the previous violent dips so i really wouldn't be worried here
if you were scared to enter at 900+ this is the perfect chance
do you really think it will dip more when TSM has strong earnings + guidance?
MomentumPython1337 OP : oh and i forgot to harp on this for the millionth time the forward PEG ratio for SMCI this is data straight from NASDAQ it's 0.74 that's below 1 and it's far below anything from NVDA or AVGO or the other big semi names. lower = better obviously
if you expand this multiple from 0.74x to 1x which is peter lynch's definition of fairly valued then that's a stock price of ~1100 which is, again, a significant upside from here and that would also represent a breakout from this bullish pennant that I've drawn
i know the markets are not perfect and we're assuming smci lives up to these forecasted growth rates but I'm trying to build a case here every valuation is both an art and a science