Key takeout
- IONQ stock experienced a significant increase on Thursday, highlighting its position in the quantum computing market, as the CEO expressed ambitions to rival NVIDIA.
- After gaining support from the 200-day moving average, IONQ shares moved upward within a rising wedge before making a notable breakout during Thursday’s trading session.
- Investors should keep an eye on major resistance levels around $55 and $100, while also monitoring crucial support points at approximately $28 and nearly $18.
IONQ (IONQ) shares jumped considerably on Thursday, outperforming other quantum computing stocks, following the company’s CEO’s vision of becoming the NVIDIA of the quantum sector.
CEO Niccolo de Masi noted in an interview with Baron’s that “Nvidia and Broadcom (AVGO) are involved in Quantum just as they are in traditional GPU areas,” suggesting a belief that IONQ could play a significant role like NVIDIA.
This was highlighted by D-Wave Quantum’s (QBTS) announcement about their upcoming Gen Quantum Computer, known as Advantage2, which has generated bullish sentiment on Wall Street.
On Thursday, IONQ shares surged by 37% to $45.79, positioning the stock favorably for aggressive trading in 2025.
Next, we’ll delve deeper into the IONQ chart and conduct a technical analysis to pinpoint the price levels that investors are investigating.
Rising wedge breakout
Following support from a crucial 200-day moving average, IONQ shares advanced within a rising wedge before breaking out during Thursday’s trading.
The relative strength index indicates strong bullish momentum, registering above the 70 mark, though it also warns of potential short-term profit-taking.
It’s essential to pinpoint key overhead levels on IONQ’s charts during recent stock purchases and to identify significant support levels to watch in case of future pullbacks.
Important overhead areas to watch
The first key resistance area to observe is around $55. Investors who bought during the rising wedge phase might look for selling opportunities at this level, close to the stock’s all-time highs.
To estimate a possible peak price, investors can use a bar pattern tool. By applying this method to IONQ’s charts, it infers price trends from November through January might project a target price of about $100, indicating a potential increase of around 120% above Thursday’s closing figure.
This past upward movement aligns with a daily increase over time and the percentage change noted on Thursday. Notably, trends have occurred over a span of 40 trading days, meaning comparable movements from the present breakout could extend until late July.
Support level to monitor
If the stock retraces, investors should first observe the $28 level, which is supported by the intersection of the 50-day moving average and previous trading activity extending back to last November.
Should the price dip below this point, IONQ stocks might find support around $18. This location is worth watching for potential buying opportunities, as it aligns with a recent peak in late October and a trough earlier in March.
Any comments and analyses mentioned here are purely for informational purposes. For more details, review the Warranty and Liability Disclaimer.
As of the date of this article, there are no securities owned by the writer.
