SMCI is stuck in a defined range with a downside bias — momentum and weekly cycle patterns are negative, so I lean toward selling. It may not be worth investors' attention until year-end; high implied volatility around the November 3 earnings suits a straddle or strangle.

This is SMCI. This company announced its earnings, and its performance was extremely volatile. I want you to look at these weekly cycle patterns, which of course point to December, and when the price drops below the support level , it stabilizes here, and this is the daily chart.

Here they raised their expectations and the share price rose , but the earnings report will not be released until November 3. As you can see, the periodic pattern is evident here , and this is a large rise.

When momentum turns negative, it seems to me that you may be trading within a defined range here. So, with this type of stock, when I see this type of movement, what I'm looking for is a price range, because it might be one of those stocks that you could use a " straddle" or "strangle" strategy on if you're an options trader.

This is the range here, and as you can see, it is the middle of the range at this point. I would look for an opportunity with a slight bias towards selling here, because the momentum is negative, and the cycle patterns look negative, but you have this big bounce, and here come the profits, so it is likely to see high implied volatility.

But this stock, in my opinion, may remain outside the scope of investment until the end of the year before it becomes worthwhile for investors, and it seems to me that it may become so at that time.

This is SMCI stock, which is a very small stock, and it currently appears to me to be trading within a defined range with a tendency towards the downside. This is SMCI stock.

This is SMCI stock. This is the general outlook for semiconductor stocks, and it is certainly a cautionary picture.