QBTS Price Forecast: Will $100M CHIPS Act Capital Explode D-Wave Stock Levels Past $28?

Quick overview

Shares of quantum computing firm D-Wave (QBTS) remain structurally strong at $26.77 today as buyers work hard to cap a small technical pullback of 5.41%. As the quantum annealing company consolidates on low volume in a classic rising channel pattern on the two-hour chart, it draws massive, explicit attention from Washington.

QBTS Highlights Today

1. CHIPS Act: QBTS shares traded sharply higher following confirmation of a signed Letter of Intent with the US Department of Commerce. As a part of the federal quantum security infrastructure program, QBTS recently secured $100 million in direct CHIPS and Science Act funding in exchange for direct equity investment by the federal government.
2. Commercial Advantage2: QBTS commercial metrics have expanded at a dramatically faster rate than gate-model quantum computing competitors. The new sixth-gen Advantage2 system features over 4,400 qubits and 20-way connectivity and delivers an industry-leading 25,000x performance improvement on large-scale enterprise optimization and complex materials science applications.
3. Defense Logistics: Long-term cash burn concerns are currently offset by long backlog of defense agency programs. This week, D-Wave confirmed year two funding for its Microelectronics Commons program as a part of a $25 million Department of Defense Group Award, which continues to grow its domestic fabrication center for superconducting qubits, SQFab.

QBTS Technical Analysis

QBTS shares shows an immaculate, classic bullish continuation formation. QBTS stock surged to new cycle highs from multi-week cycle cycle lows at $17.75 on the two-hour time scale on massive volume. This surge moved short-term technical indicators into an aggressive bull flag.

After a test of multi-month highs at $29.40, QBTS pulled back on low volume to reset overextended short-term indicators and confirmed the support of the 0.382 Fibonacci retracement at $26.28. At this level, buyers returned to protect the rising channel floor.

The 14-period relative strength index has retreated into a very healthy neutral zone between 51 and 55, removing all overbought readings and providing the ideal platform for an upside breakout in QBTS stock.

Immediate resistance:

• $27.00 (resistance)
• $28.29 (0.236 Fibonacci)
• $29.40 (Major cycle high)

Immediate support:

• $26.28 (0.382 Fibonacci)
• $25.33 (Falling channel)
• $23.02 (Structure)

QBTS Trade Setup

Trend continuation formation is in place as price action consolidates above broken major moving averages on the two-hour chart.

• Trade: Buy stop above $27.00 (two-hour close).
• Target: $28.29 (T1), $29.89 (T2).
• Stop: $25.33 (underneath channel support).

Summary

Short-term outlook: QBTS stock is completing a post announcement technical reset of liquidity with momentum building toward a test of the $30.00 level. Although long-term cash utilization from nascent deep tech has kept bears in control for now, the direct equity investment by the federal government along with strong commercial demand from large-scale enterprise customers has provided QBTS stock a strong floor.

Investors should stay focused on the short-term technical trend continuation, taking advantage of consolidation within this rising channel pattern, before the next wave of government funding is executed.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

QTBS and RGTI Dive as Quantum Stocks Pull Back After Policy-Driven Surge, while Investors Reassess Risk

7 days ago

Save

D-Wave Quantum (QBTS) Surges 33% After $100M U.S. Quantum Bet Signals Industry Turning Point

3 wks ago

Save

QBTS and RGTI Stock Attempts Breakout after US Govt $2 Billion Award to Quantum Against Public

3 wks ago

Save