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D-Wave Quantum Stock Surge Sparks Investor Interest

Key Takeaways

D-Wave Quantum’s shares are grabbing attention after reaching their highest point since 2022. Investors have flocked to the stock following recent reports indicating that the company’s quantum computer has surpassed a leading supercomputer in performance. The stock’s breakout above a symmetrical triangle pattern last Friday suggests a potential for continued upward movement. Analysts predict a bullish target of $20 based on the measuring principle, with bar pattern analysis indicating a target of approximately $52. Investors should keep an eye on the support level between $5.30 and $3.75 during any potential profit-taking.

D-Wave Quantum (QBTS) has become a focal point in stock markets as its value surged to unprecedented highs today. This follows significant news that highlighted the performance of the company’s quantum computer, outperforming a classical supercomputer in tackling intricate materials discovery problems.

In a recent announcement, D-Wave declared that its annealing quantum computer had outperformed one of the leading classical supercomputers. CEO Alan Bratz noted that this marks a pivotal moment for the firm, as it demonstrates the capability of their quantum technology to exceed traditional computing power.

Since the announcement, D-Wave’s share price has nearly doubled, reflecting a remarkable rise of over 400% within the last year, driven by a burgeoning interest in quantum computing technologies.

On Monday, D-Wave shares advanced by 10%, finishing the day at $11.18, marking their highest closing price since August 2022.

This article will delve deeper into the technical aspects of D-Wave’s stock movements and highlight critical price levels for investors to watch closely.

Symmetrical Triangle Breakout

D-Wave’s stock had been consolidating within a symmetrical triangle pattern for several months before breaking through the upper trendline during Friday’s trading session. This point indicates a potential continuation of the bullish momentum.

The uptick in trading volume accompanying this breakout indicates a strong level of investor conviction. Additionally, the relative strength index (RSI) underscores a positive price momentum; however, it now sits in overbought territory, which could suggest a phase of profit-taking may be imminent.

With technical analysis, we can identify two bullish price targets for investors to monitor on D-Wave’s chart, while also noting an essential support zone to watch during any retracement.

Chart-Based Bullish Price Targets

Measuring Principle Target

The measuring principle approach helps forecast target prices by analyzing the percentage change of the symmetrical triangle from its initiation and applying that to the breakout point. For instance, applying a 180% increase from $7.15 yields a projected price target of $20.

Bars Pattern Target

Using a bars pattern analysis involves studying the stock’s trend from early November to late December of the previous year and repositioning that trend from the recent breakout point. This method suggests a more ambitious target of around $52, should the current price action replicate past movements following a similar breakout.

Notably, the preceding uptrend analyzed also resulted from a breakout of a symmetrical triangle, paralleling the current move.

Important Zone of Support Worth Monitoring

As investors navigate potential profit-taking opportunities in D-Wave shares, it is advisable to keep a close watch on a support zone identified between $5.30 and $3.75. This range corresponds to a series of peaks and troughs visible on the chart, which formed between last November and March of this year, presenting buying opportunities for savvy investors.

The insights provided in this article are intended for informational purposes only.

At the time of writing, the author asserts they do not hold any of the securities mentioned.

Source
www.investopedia.com