I typically don’t post many new trade ideas in the after-hours session but just came home & noticed that SMCI (Super Micro Computer Inc) is still trading at the final target (T2) from the recent short that we closed out earlier today. The stock is currently trading down around 10% from yesterday’s close & offers an objective long entry here around the 23.55 level.
I’m providing price targets on both the 60-minute chart as well as the daily chart & will share my preference of target(s) later this week, assuming this trade is not stopped out (max. suggested stop below 19.50. 60-minute & daily charts below.
SMCI 60m Nov 5th
SMCI daily 2 Nov 5th
The reason I didn’t reverse (cover the short & immediately go long) when T2 was hit earlier today is because the risk of holding this hot-potato into earnings was just too big. Now that earnings are out of the way (although not fully digested by the stock market until at least tomorrow), the risk of a huge gap beyond a reasonable placed stop is lower. Not eliminated but lower.