D-Wave Quantum Inc. (NYSE: QBTS) Surges By Over 1,070 % In Only Two Months

D-Wave Quantum Inc. (NYSE: QBTS) is a pioneering company in the quantum computing sector, specializing in the development and delivery of quantum computing systems, software, and services. In recent developments, D-Wave has announced a collaboration with Japan Tobacco Inc. to accelerate innovative drug discovery using Quantum AI. Amid the Quantum frenzy, QBTS stock has seen significant growth.

QBTS Stock Surged By 2,780 % Since Summer 2023

Since its low in the summer of 2023, QBTS stock has experienced an extraordinary surge of 2,780%, marking an exceptional rally. In the past two months alone, the stock has gained over 1,070%, showcasing an impressive short-term uptrend. Despite this rapid ascent, the stock has yet to reach its all-time high (ATH) of $13.23, which remains intact as a key resistance level.

The MACD histogram has been progressively ticking higher over the past three months, aligning with the strong rise in price and reinforcing the bullish outlook. Additionally, the RSI has recently re-entered neutral territory after briefly entering overbought conditions, suggesting that the stock may be in a consolidation phase before potentially continuing its upward movement. These technical indicators support the continued bullish sentiment for QBTS, though attention should be paid to the upcoming price action as it approaches its ATH.

QBTS

QBTS Stock Reaches Important Fibonacci Support Level

After a sharp correction over the past two weeks, QBTS has now found significant support at the golden ratio level at $4.5, a key technical zone that could potentially act as a strong foundation for a bullish reversal. From this level, the stock may look to rally towards the next resistance range between $11.4 and $13.2, where previous highs and market sentiment could limit further upside.

However, there are signs of caution. The MACD histogram has started to tick bearishly lower this week, suggesting a short-term loss of momentum. Despite this, the MACD lines remain bullishly crossed, indicating that the overall trend is still favorable for the bulls. Additionally, the RSI has entered neutral territory, offering no clear direction either way, which suggests indecision in the market. This mixed set of indicators implies that while a bounce is possible, the stock may face challenges as it navigates these key levels of support and resistance.

QBTS

Mixed Signals On The Daily Chart

On the daily chart, the indicators present a mixed technical picture. On the bearish side, the MACD lines have crossed bearishly, and the MACD histogram is ticking lower, suggesting weakening momentum. Additionally, the RSI is taking a neutral stance, neither indicating overbought nor oversold conditions, which implies market indecision.

On the bullish side, the EMAs have formed a golden crossover, reinforcing the overall bullish trend in the short- to medium-term. This suggests that, despite the recent bearish signals, the broader market sentiment remains positive and the potential for upward movement is still intact. The mixed indicators highlight the current uncertainty in price action, with key support and resistance levels likely to determine the next significant move.

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Similar Outlook For The QBTS Stock On The 4H Chart

On the 4H chart, the indicators present a similar mixed outlook. The bearish MACD and neutral RSI suggest a period of consolidation or potential weakness, while the bullish EMAs continue to confirm the short-term bullish trend, albeit with some cautionary signals.

QBTS is now facing its next significant Fibonacci resistance levels at $7.23 and $9, with the golden ratio at $9 serving as a critical level to break in order to invalidate the ongoing corrective movement. Should the stock fail to clear this resistance, it may face rejection, especially as the 50-4H-EMA also acts as resistance near the $7 level.

If QBTS breaks below the golden ratio support at $4.2, the next significant support zone is found between $2.15 and $2.8, where the stock could stabilize or face further downside pressure. These levels are crucial to watch for potential reversals or breakdowns in the price action.

QBTS

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Konstantin Kaiser
Financial Writer and Market Analyst
Konstantin Kaiser comes from a data science background and has significant experience in quantitative trading. His interest in technology took a notable turn in 2013 when he discovered Bitcoin and was instantly intrigued by the potential of this disruptive technology.
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