SMCI technicals show bullish accumulation and potential breakout, but legal risks may cause profit-taking near $47.41.

Now look at the SMCI index, one of the biggest gainers today at 9.5%, but as you can see, it is still within the range it has been in since those huge highs at the beginning of August, when we broke through the upper half of this parallel descending channel.

What does all this look like? It's a bullish accumulation, and today's large upward move appears to be setting the stage for a possible breakout. We will encounter some obstacles here at the upper end of this parallel channel at 4205, but if you follow a few more steps in technical analysis, I will show you where we might see a critical level of volatility in the event of a breakout of the SMCI indicator.

All I did was draw one trend line as you saw, connect two pivot points, and then draw another trend line connecting two pivot points here as you can see in the graph .

Hey everyone. The first trend line was on October 9, and it was linked to this pivot point on June 2.

The secondary trend line was here on June 23, and it was linked to this pivot point on August 13. What does this mean, guys? It points to a point at approximately $47.41.

If the rise continues and breaks through One of the reasons for the decline in SMCI's share price from its previous levels is the existence of numerous legal problems that continue to plague them.

They were involved in a case and were accused of selling some prohibited chips in Asia, which were then repackaged and sold to China. This lawsuit is still ongoing here in the United States, and it is likely to provide a great opportunity for investors to take profits and exit their positions if they have been harmed by this decline.

But bear in mind this, since...the SMCI index fell to its lowest point in March, then rose by nearly 106%, and since its most recent rebound in July, it has risen by more than 72%.

So, with each rise, investors will take profits, especially at the 4741 level.