Has the market bottomed for QBTS for now?

[HB123]

• The current price action of the stock with ticker symbol QBTS has shown an inverted hammer on higher than average volume on a 4-hour extended hours chart along with the next candle fully engulfing the inverted hammer candle on higher than average volume as well very close to an area of major support on the daily chart of $26.37.
• However, on the daily chart price has created a strong bullish candle, but the volume indicator shows below average volume as per the 20 SMA volume line.
• I am a bit confused if this signals a market bottom or not as the 4-hour chart in my opinion is signalling a market bottom but the daily chart is not confirming this market bottom with an up move with higher than normal volume.
• Could you please provide your view on QBTS and explain if you think the market has reached a bottom or not at the suppport level of $26.37

 

[Kripto Tolga]

23,81 - 26,45 bottom zone 😉

 

[HB123]

23,81 - 26,45 bottom zone 😉

View attachment 344368

Thank you for your chart and analysis. It is truly appreciated. A couple of questions on the chart. I am assuming the red zone as you have noted in your comments between $23.81 - $26.45 is a zone of support? Would you mind elaborating on why you think this is going to be the "bottom zone" and how you arrived at this support zone? Also, could you please explain what the green zone at the bottom with "Buy Power: 54" indicates?

 

[xatta]

I agree with you, OP, that the situation for QBTS looks rather ambiguous. And I even have the benefit of an extra day of trading to see how its going. 🙂

On the daily chart, there is nothing remarkable that would point us in one direction or the other. It may be that it just thrashes around for a while between the support you identified around $26.50 and somewhere in the mid-$30s.