SMCI March 29, 2024: A Head & Shoulder Forming

SMCI is a clear leader during this bull market. However, after a 260% run-up from a previous buy point as shown on the chart, the stock is struggling to move up further.

Now it might slowly form a Head & Shoulders Pattern, and a breakdown through the neckline would signal a sell.

Interestingly, the neckline is right near the 50-day moving average (blue line), therefore a breakdown there will be an even stronger sell signal.

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On April 9, 2024, the stock already moved down the neckline.

However, to be clear, I absolutely do not plan to short SMCI or any other stocks. I am looking for reversal pattern at the top ONLY to sell which I have already bought, to close the trade.

Shorting stocks, especially tech stocks, in my opinion, is very risky.