Quantum Computing Stock Jumped 25% on Wednesday—Watch These Key Price Levels

Quantum Computing (QUBT) shares surged to their highest level since December on Wednesday, boosted by Nvidia CEO Jensen Huang’s bullish remarks about the emerging technology.

Shares of quantum computing companies shot higher after Huang said the industry is “reaching an inflection point,” adding that he expects quantum computing to be able to solve some interesting problems in the coming years. The Nvidia (NVDA) chief’s comments struck a more optimistic tone that earlier this year when he said the technology was 15 to 30 years away. 

Quantum Computing shares, which traded below $1 dollar a year ago, gained 25% on Wednesday to close at around $19, putting the stock back into positive territory for 2025. The company last month said it had finished construction of its Quantum Photonic Chip Foundry in Tempe, Ariz., and that it had deepened its engagement with both government and commercial partners amid growing interest in its photonic and quantum optics technology.

Below, we take a closer look at Quantum Computing’s chart and apply technical analysis to identify major price levels worth watching out for.

Rectangle Formation Breakout

After retracing to the 200-day moving average (MA), Quantum Computing shares trended higher before forming a rectangle, a chart formation signaling a continuation of the stock’s longer-term strong uptrend.

That move higher started earlier this week, with the stock breaking out from the formation on the highest daily trading volume since mid-December. Moreover, the relative strength index confirms bullish price momentum, though the indicator also flashes overbought conditions, potentially leading to short-term pullbacks.

Let’s point out two major overhead areas on Quantum Computing’s chart to watch if the stock continues to climb and also identify key support levels worth monitoring during future retracements.

Major Overhead Areas to Watch

Near-term strength could initially lift the shares to around $27. This area on the chart may provide overhead resistance near the stock’s prominent December peak.

Investors can project an overhead area to watch above the December high by using the measured move technique, also known by chart watchers as the measuring principle.

When applying the analysis to Quantum Computing’s chart, we calculate the percentage change of the uptrend that immediately preceded the rectangle and add it to the formation’s top trendline value. For example, we apply a 150% increase to $15, which projects a target of $37.50. representing nearly 100% upside from Wednesday’s closing price.

Key Support Levels Worth Monitoring

Retracements in the stock could see the price revisit support around $15. Investors would likely look for “buying the dip” opportunities in this area near the rectangle formation’s top trendline.

Finally, selling below this level could trigger a drop to $9. Quantum Computing shares find a confluence of support at this location near the upward sloping 50-day MA and a trendline that links a range of price action on the chart stretching back to last November.

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As of the date this article was written, the author does not own any of the above securities.