$SMCI · Verified Investing · 2026-11-02

First up, SMCI. Now, SMCI over here, you can see we had a big gap up on October 21st. That was on the back of news that SMCI had a lot of their executives cleared from legal actions regarding some of the chips that were sent over to Asia, repackaged, and then sold to China. some individuals got in a lot of trouble for that, but the executives they have left got cleared for all of that uh potential future

Now we're breaking this bearish consolidation which brings me to a key level of support that I think SMCI is headed for. I've already got it drawn out for you. You can see I've got a trend line coming from the lows on March of this year connected over to this next pivot low in July.

I've drawn a fib retrace from the lows here in July up to the high here in October and see what's uh intersecting with an X marks the spot at $28.17 which is the fib 786 fib uh retrace.

Also notice right amongst this area we've got some high pivots. So it's in essence as a support zone as well starting right here at $292.

So, if you're an aggressive trader, you can start inching in around 2912 or wait for this fib retrace to get hit or wait for both the fib and this support inclining trend line to get hit and then start uh accumulating some SMCI for a pending bounce.

This is a sharp sell down, one that likely will catch some traction as this company is is heavily involved in the AI data center space. Margins aren't that high, but they're still doing pretty good.

And as long as they got the legal issues behind them, I see SMCI could be going much higher on the chart. $28.17 is a nice conservative spot to pick some up.

Now, keep in mind SMCI has earnings after the bell tomorrow and so does AMD. This is why we're covering them today. We likely will still uh uh check back in on them tomorrow, but the catalyst for the price to drop on SMCI down to that level of $28 could very well be the earnings call tomorrow.