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  1. Home
  2. / Investing

IonQ: Buckle Up If You Plan on Trading This Stock

Let's see if we can figure out the quantum computing firm's next move.
By BRUCE KAMICH
Aug 11, 2023 | 11:38 AM EDT
Stocks quotes in this article: IONQ

IonQ ( IONQ) is a leader in quantum computing and I think I might need its power to discern the next move in its stock chart. Let's see how far we can go on our own. 
 
In this daily bar chart of IONQ, below, I can see that prices have made an impressive rally from a late December low. Prices climbed and climbed, and trade above the rising 50-day moving average line and above the rising 200-day line. Trading volume has become a lot more active since early April and that tells us that investors have taken notice of this company.
 
The On-Balance-Volume (OBV) line has been very choppy the past three months and suggests both aggressive buying and aggressive selling. The 12-day price momentum study in the lower panel shows roughly equal highs in momentum when prices have made higher highs - a bearish divergence and it may be foreshadowing a decline in the weeks ahead.
 
 
In this weekly Japanese candlestick chart of IONQ, below, I see a mixed picture. Prices ran up sharply and recently showed us an upper shadow near $20 telling me that some traders began to reject the highs. The slope of the 40-week moving average line is positive and prices got extended (overbought) above the line at 2-times the intersection or twice $7 or so.
 
The weekly OBV line has been strong but a turn lower in July might be the start of a reversal. The 12-week price momentum study shows that price momentum has made a turn lower. 
 
 
In this daily Point and Figure chart of IONQ, below, I can see a downside price target in the $10 area. 
 
 
 
In this weekly Point and Figure chart of IONQ, below, the software projects a possible target in the $41 area. 
 
Bottom line strategy: IONQ has already made a big rally this year and maybe investors will be moving on. Could prices soar still higher? It is possible. Could prices slump lower? Yeah. Inexperienced traders should sit this one out. 
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TAGS: Investing | Stocks | Technical Analysis | Software & Services | Technology | Technology Hardware & Equipment | U.S. Equity

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