IONQ’s 30% plunge: Can the quantum stock hold the $59.36 breakout line?
|IonQ, Inc. (IONQ), the high-flying quantum computing specialist, just hit the brakes, suffering a steep 30% decline over the last two weeks.
The intense downside pressure culminated on Monday as price plunged directly to the long-term inclining trendline. This move marks a complete retracement of the powerful breakout that occurred during the week of September 15th, bringing the stock back to the exact level it had previously escaped from.
This sudden volatility wasn't entirely unexpected. Technical signals, specifically two distinct "topping tails" on the weekly chart, had foreshadowed this downside pressure as far back as September 22nd. With the stock now 30% off its recent highs, the immediate test is the validity of the inclining trendline, currently sitting at $59.36. Since IONQ is notoriously volatile, traders must be prepared for swift movements and potential level breakdowns.
Below this immediate test are a series of critical support levels, with the most robust technical floor sitting at $47.33. Because the stock has already dropped 30% in such a short window, each of these technical levels, starting with the current $59.36 trendline, is capable of triggering a sharp near-term bounce. The risk remains high until the price confirms it can hold one of these key floors.
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