Robert Musella wrote a post · Dec 11, 2024 17:58

$RGTI

🚀 Quantum Leap: Analyzing Rigetti Computing (RGTI) with The Roman Sun Tzu Method

Rigetti Computing (RGTI) is making waves, closing up 45.19% at $6.49 during regular trading hours, with pre-market action already showing a further surge of +10.48% to $7.17. Let’s break down this explosive move and refine our entry strategy through the lens of The Roman Sun Tzu Method — my thematic investing framework for conquering the market.

🧠 Thematic Context

• Quantum Computing Boom: As a leader in the quantum computing space, RGTI fits perfectly within the disruptive tech themes (AI, space, quantum computing) prioritized in my strategy. These industries are primed for long-term growth, and Rigetti’s recent catalyst (a partnership with Quantum Machines) adds momentum.
• Market Catalyst: Big announcements like these signal transformative potential. In The Roman Sun Tzu Method, we focus on riding such waves strategically, identifying opportunities before the crowd catches on.

📈 Technical Breakdown

• Bullish Breakout:
• Price skyrocketed well above the 20-day moving average (MA20: $2.18) and the 250-day moving average (MA250: $1.23). This kind of breakout signifies strength, a clear “attack” moment in my method.
• Overbought Signal?
• RSI levels (89.8, 84.0, 79.5) indicate overbought conditions, so caution is warranted. Momentum is strong, but pullbacks could provide better entry points.
• Volume Surge:
• A staggering 248M shares traded — a huge green flag for institutional and retail interest.

🛠️ Updated Price Entry Strategy

Given the sharp rally and pre-market action, it’s essential to adjust our price entry for better risk management:

1️⃣ Revised Entry Range:

• Preferred Range: $5.75–$6.25. This range aligns with potential retracements toward the Bollinger Band midpoint or the MA20, offering a better risk-reward ratio.
• Momentum-Based Entry: If the stock holds above $7.00 with strong volume, consider a small position at this breakout level with a tight stop-loss.

2️⃣ Risk Management:

• Avoid chasing the stock at elevated levels. Use disciplined position sizing to protect against downside risk.

3️⃣ Options Alternative:

• Use a vertical call spread to participate in further upside while capping risk. For example, a $7.50-$10.00 call spread could capture gains while limiting exposure to volatility.

🎯 Strategic Takeaways

• Momentum Play: RGTI’s explosive move is part of the larger quantum computing trend, a core focus in The Roman Sun Tzu Method. Long-term potential remains high, but short-term volatility requires careful timing.
• Patience Is Key: Wait for pullbacks or consolidation for an optimal entry point. If entering during momentum, use strategies that limit risk.

⚡️ Final Thoughts

Rigetti Computing (RGTI) is a textbook example of thematic momentum in action, aligning perfectly with the Roman Sun Tzu Method’s focus on disruptive innovation. The quantum computing revolution is here, and RGTI’s recent partnership adds fuel to the fire. Adjust your strategy, manage risk, and position yourself to conquer this opportunity.

💡 What’s your take on RGTI’s future? Are you jumping in now or waiting for a pullback? Let’s discuss!

© 2024 Robert M. Musella