SMCI

Now look at the SMCI index, one of the biggest gainers today at 9.5%, but as you can see, it is still within the range it has been in since those huge highs at the beginning of August, when we broke through the upper half of this parallel descending channel.

What does all this look like? It's a bullish accumulation, and today's large upward move appears to be setting the stage for a possible breakout. We will encounter some obstacles here at the upper end of this parallel channel at 4205, but if you follow a few more steps in technical analysis, I will show you where we might see a critical level of volatility in the event of a breakout of the SMCI indicator.

The first one I want to talk about is Super Micro Computer, ticker SMCI. So, SMCI, they essentially design and build AI server systems. Those are the the racks of hardware that go inside data centers to run AI workloads.

They're built around chips from the likes of Nvidia, AMD, and others. and their data center building block solutions architecture essentially lets customers configure servers modularly rather than having to buy these very rigid prefixed systems.

Someone wants our thoughts on SMCI. >> I haven't looked at it in weeks, man. Did it explode with Dell or opposite? Let's see. >> Not SMCI. I mean, it's been moving up. They had a nice earnings report. I remember we did play it that night.

The issue here is the issue everyone knows about is is credibility and is there under the closet with um they they audited themselves and they came out and said they're perfect angels. Remember that?

So, on SMCI, we are looking at a potential golden cross. You can see on Friday, look at that, the uh 50 SMA is testing that 200 SMA, and if it flips, creating that golden cross, favoring a nice move higher.

Now, if SMCI can push higher, you're looking for an entry, you get in. Well, where the next couple levels of resistance that I'm watching here on SMCI? First one, boom, right here.

42.31. It is that high pivot just from the other day back on uh Thursday, the 13th of August. That would be approximately 13% higher if it can push up into there. One, I anticipate resistance.

And two, let's say you break it, you could be headed to this 45 around this $45 level with all this kind of price action here.