D-Wave Quantum Inc. (NYSE: QBTS) has taken the market by storm, delivering a jaw-dropping 1,000% gain for investors following Kevin Cook’s recommendation in TAZR Trader last September. The quantum computing stock has been on a blistering run over the past five sessions, with its share price more than doubling amid soaring investor interest.
The recent volume surge has been nothing short of spectacular, with over 200 million shares trading daily—highlighting the growing frenzy around this emerging tech player. With Nvidia’s GTC Conference on the horizon, anticipation is building, and many analysts believe this could turn into a classic “buy the rumor, sell the news” event.
D-Wave Quantum’s Chart in Focus: Key Technical Insights
Dave Bartosiak, a market expert, has been dissecting D-Wave’s price action using a comprehensive technical analysis approach, offering traders valuable insights into the stock’s potential next moves.
📉 Moving Averages: Gauging the Trend
Bartosiak highlights the 50-day and 200-day moving averages as crucial indicators. The crossover points between these averages often signal potential trend changes. A golden cross—where the 50-day MA moves above the 200-day MA—is typically seen as a bullish signal, while a death cross indicates bearishness.
🔥 Support and Resistance: Key Price Levels
D-Wave Quantum is testing key resistance levels it last hit before tumbling earlier this year. Bartosiak underscores the importance of breaking through resistance with strong volume, which could trigger further upside momentum. Conversely, if the stock fails to hold above critical support levels, it may face a pullback.
📊 Chart Patterns: Spotting Breakout Signals
The technical expert also examines chart patterns, such as:
- Cup and handle: A bullish formation indicating continuation of upward momentum.
- Head and shoulders: A bearish reversal pattern signaling potential trend changes.
- Flags and pennants: These continuation patterns could hint at further upside if the bullish trend holds.
📈 Volume Analysis: Validating Price Moves
Bartosiak emphasizes the importance of volume in confirming price breakouts or breakdowns. With D-Wave Quantum seeing record-high volume, the stock’s recent surge carries credibility. Sustained high volume could fuel further gains, while a sudden drop-off may indicate a potential reversal.
Hype Around Nvidia’s GTC Conference: A Key Catalyst
Investors are eagerly awaiting Nvidia’s GTC Conference, with many speculating that D-Wave Quantum could benefit from the growing interest in AI and quantum computing. However, some market watchers caution that the current surge may reflect a “buy the rumor, sell the news” scenario.
As D-Wave Quantum continues its parabolic rise, traders are watching closely to see if the stock can maintain its momentum or face a post-GTC correction.
