Above is a daily chart of QBTS, and it’s been interesting to watch over the past several weeks. The stock has experienced a significant pullback over the last six weeks, but what caught my attention is that it has held a key support area. The $20 level has historically been significant resistance for QBTS, from May through September, and it’s now flipped into support. That kind of role reversal is exactly what I look for when assessing potential long setups.
Last week, we tested this support area, and the stock responded well, bouncing off the $20 level. That showed to me that buyers are stepping in at a level that previously caused selling pressure, which is an encouraging sign for those of us following the trend. Today, QBTS broke the downtrend line drawn from the October high, and although the volume increase was modest, it’s still a positive confirmation. Breaking a downtrend line is often the first step in a potential reversal, and combined with support holding, it increases my confidence in higher prices.
Looking forward, I expect QBTS to continue moving higher in the coming weeks as buyers take control. I’ll be watching for follow through on volume to confirm the breakout, but for now, the technical setup is aligning in favor of the bulls. This is a good example of how key support levels, trendline breaks, and historical resistance can guide trading decisions.
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