Big Pullback On SMCI - Super Micro Computer

SMCI is another company whose share price is strongly benefiting from the bubble in AI stocks and looked WAY over bought for the last few weeks. It is still up 776% over the last 12 months and that is after Fridays 20% pullback!

NVIDIA who is leading the AI charge has earnings on Wednesday and depending on how that goes we might see a bounce on SMCI or a bigger drop. Buyer and holders beware. Post NVIDIA earnings should see more certainty.

Secondary indicators such as the RSI and the MACD both show weakening momentum as well as the price is probably still too high unless it starts to consolidate or pull back further.

Big reaction on Friday with profit takers probably sensibly jumping ship. Will be interesting to see how it goes in the next few weeks.