Tech stocks are caught in the middle of a crisis, which makes Wednesday’s trading action a bit more interesting. Palantir is on a post earnings sugar high, Tesla is all caught up in the traffic, and Super Micro Computer (SMCI) is catching its breath after once again tripping on earnings. If you’re an investor in search of clear signs, you won’t get them from this. However, that doesn’t imply that opportunity does not exist, rather it suggests that patience and timing can be the best instruments these days. These are not stocks for the fragile, they are for those that don’t mind a little turmoil on the road.
Through deconstructing this trio, we get to understand that Tesla’s price action has been lethargic, with support near $292 and firmer ground near $200. Even in spite of that weariness, investors keep on stepping onto dips, which indicates that investor faith hasn’t disappeared.
On the other hand, Palantir is acting like textbook post-earnings that has a dramatic opening followed by a possible settling down phase. This type of arrangement typically provokes profit-taking, but it also tends to fascinate new buyers who are willing to catch the ride.
Then there’s Super Micro Computer, as the firm has missed earnings and has a history of disappointing quarterly performances, the overall tech dedication and AI relationship prevent it from dropping off the investors’ radar.
Palantir is in the mode of a breakout, and the dip in Tesla might be a buying opportunity before Robotaxi obsession returns. SMCI can regain momentum soon due to AI-fueled demand, even if the report was below the bar. However, due to elevated volatility, both SMCI and Tesla are looking fatigued. Waiting for confirmation to buy might be the wiser option.
Wednesday might be the day that these three tech stocks provide a sneak peek of what’s coming next. The stock is at the top of a range, but bulls might prefer to probe the 200-day EMA before risking another entry. Thus, while Palantir appears like a momentum trade, Tesla is in a value dip for longer-term owners, and SMCI is trapped in a constrained scenario, temporarily.
