QUANTUM COMPUTING ON A TEAR

Despite the recent downturn in equity indices, quantum computing space has been on a tear. We will talk about Rigetti Computing here. It had been one of those stocks that had done nothing for the last 2 years, however, has gone up by 1200% since 21 November 2024, i.e. 12x.

The first sign of life appeared on 22 November 24 when volumes climbed up to 97 million from 34 million a day earlier. On 25 November, the volumes were 274 million and the stock gapped up…the crowd in the know and institutions were on.

So we will try and evaluate if we could have identified this stock and benefitted on the basis of price action.

On 25 November the stock made a high of 3.37. The next 7 trading sessions are kind of range bound with the market adjusting to the new price with signs of pushing through the supply available above 3. In this situation, where volumes have exploded, we would look for a close above the 3.37 level with strong price action. We get that on 6th December and should be on the band wagon.

The first sell signal was clear on 18th December with long spikes at a significant supply level at 12.5. The question in such cases is what if the stock just keeps on going up and we miss out by selling…and that is a valid question.

However, an astute trader could have gotten in on 20th December based off retracements and price action at around 9 for a run to around 18.

Currently, a few bearish signals are clear on the chart indicating caution.