D-Wave Quantum (QBTS): Seeking New All-Time Highs!
Stocks such as Rigetti Computing Inc., Quantum Computing Inc., D-Wave Quantum Inc., and IonQ Inc. have all seen triple-digit gains over the past six months and over the past year. The exchange-traded fund that tracks these stocks, the Defiance Quantum ETF, increased 26.29% over the past six months and 53.69% over the past year. Specifically, D-Wave Quantum Inc. (NYSE: QBTS) increased 405.22% over the past six months and 718.31% over the past year.
Since these quantum computing companies are still in their growth phase and currently have negative earnings, it is not possible to use the price-earnings ratio to estimate their valuation. However, the price-to-sales ratio, which is found by dividing a company's market capitalization by its total sales, can be used to value these companies.
According to Bloomberg data, QBTS's P/S ratio is 104.63.
---> What is the company's technical outlook?
Looking at the table, the company is CLEARLY BULLISH on its main timeframes. Today, it stopped right at a VERY IMPORTANT RESISTANCE level located at 11.97, which also coincided with the day's PIVOT POINT R2.
If it breaks above the 12 level, it would directly test the 13.26 level, its all-time high reached on August 8, 2022.
--> What risks do we face?
The biggest risks observed are:
1) Bad news that may come out about the company or its sector (quantum computing).
2) The high appreciation they have experienced over the last year.
3) That today it reached its first major resistance to overcome and could begin a pullback to attack the zone again.
--> What happens if it starts to pull back?
I've drawn the Fibonacci retracements on the chart to give us an idea of the areas the price could fall to if it were to start a pullback, but as long as it doesn't lose the 7 zone, its upward trend will remain intact.
Best regards and good trading to all.
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**** The small chart above is the WEEKLY timeframe to get a global view of the price.
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