D-Wave Quantum (QBTS) shares remained in focus on Tuesday after hitting a multi-year high, as investors continued pouring into the stock following groundbreaking news last week about the company’s quantum computing breakthrough.
In a press release last Wednesday, D-Wave announced that its annealing quantum computer had outperformed one of the world’s most powerful classical supercomputers in solving complex materials discovery challenges. CEO Alan Baratz highlighted that this marks a significant milestone, demonstrating the company’s ability to surpass classical computing performance.
Since the announcement, D-Wave’s stock has nearly doubled, reflecting growing enthusiasm in the quantum computing sector. Over the past 12 months, shares have skyrocketed by more than 400%. On Monday, the stock climbed another 10%, closing at $11.18—the highest level since August 2022.
Technical Outlook: Key Levels to Watch
Symmetrical Triangle Breakout
D-Wave’s stock had been consolidating within a symmetrical triangle formation for several months before breaking out above the upper trendline during Friday’s session. This breakout, supported by rising trading volume, signals strong bullish momentum and suggests further upside potential.
Additionally, the relative strength index (RSI) confirms this positive trend. However, with RSI now in overbought territory, the possibility of short-term profit-taking remains.
Price Target Projections
Measuring Principle Target
Applying the measuring principle—where the percentage increase of the symmetrical triangle pattern is added to the breakout point—a projected 180% rise from $7.15 suggests an upside target of approximately $20.
Bars Pattern Target
Using bars pattern analysis—by replicating the stock’s prior uptrend from November to December and aligning it with Friday’s breakout—the stock could reach as high as $52 if the current rally mirrors past price action. Notably, the last significant breakout from a symmetrical triangle led to a similar surge.
Key Support Levels to Watch
In case of a pullback, investors should monitor a critical support zone between $5.30 and $3.75. This range, which aligns with previous peaks and troughs from November 2023 to March 2024, may present buying opportunities for traders looking to enter on a dip.
With momentum building in the quantum computing space, D-Wave’s stock remains one to watch, as technical indicators suggest the potential for continued gains.
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