Qubits, quantum advantage, gate speed — these terms could one day be as ubiquitous as AI or large language model (LLM). Quantum computing could become the next big thing in the technology space and, as an investor, it’s something you don’t want to ignore. Some companies, Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN) to name a few, have already dipped their toes in the quantum computing world.
While it may be many years before quantum computing is adopted into the mainstream, investors should take notice now. Some quantum computing stocks and exchange-traded funds (ETFs) are seeing their prices rise and, at their current price levels, it’s worth paying attention to their charts.
When reviewing the StockCharts Technical Rank (SCTR) Reports Dashboard panel on Thursday, December 26, we can see that at least four quantum computing stocks made it to the Small Cap, Top 10 category. This makes it worth analyzing their charts.
FIGURE 1. QUANTUM COMPUTING STOCKS ARE GETTING STRONG. The Small-Cap, Top 10 displayed four quantum computing stocks with high SCTR scores.Image source: StockCharts.com. For educational purposes.
All four stocks — Quantum Computing (QUBT), Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum Inc. (QBTS) displayed upside momentum in October/November (see chart below). The SCTR score for all four stocks is close to 100, their 21-day exponential moving average (EMA) and 50-day SMA are trending higher, and the 200-day SMA is flat to slightly higher.
FIGURE 2. QUANTUM COMPUTING STOCKS. All four stocks are displaying similar price action. They’re all trending higher, have strong SCTR scores, and display bullish momentum.Image source: StockChartsACP. For educational purposes.
Overall, these stocks look ripe for a bull run and the price levels are attractive. The percentage price oscillator (PPO) in the lower panel shows momentum favors the bulls. Quantum Computing Inc. (QUBT) has pulled back slightly, whereas Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum, Inc. (QBTS) are at all-time highs.
If you want to gain broader exposure to the quantum computing segment, the Defiance Quantum ETF (QTUM) invests in quantum computing and technology companies. The Symbol Summary page provides more details about the ETF.
The daily chart of QTUM below is similar to the charts of the individual stocks above.
FIGURE 3. DAILY CHART OF DEFIANCE QUANTUM ETF (QTUM). This chart is similar to the individual quantum computing stocks in Fig 2. The advantage of investing in the ETF is it gives you exposure to more than one stock and other cutting-edge technology stocks.Chart source: StockCharts.com. For educational purposes.
The Game Plan
Watch for a pullback toward the 21-day EMA or the most recent low, whichever is higher. A reversal from a support level with follow-through would be an opportune time to enter a long position. It’s worth creating a ChartList of quantum computing stocks so you can revisit these charts frequently.
So at your New Year’s Eve party, if someone mentions the words qubit and gate speed, at least you’ll know they’re talking about quantum computing.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
Leave a Reply