Rigetti Computing Is +1,700% in a Year. What Does Its Chart Say?Is quantum computing the next big thing after artificial intelligence? We might know more soon after Rigetti Computing NASDAQ:RGTI reports quarterly results on Tuesday.
Let's check out RGTI's fundamental and technical picture:
Rigetti Computing's Fundamental Analysis
Quantum-computing companies are developing super-powerful computers using the physics system known as "quantum mechanics."
Quantum stocks like RGTI, D-Wave Quantum NYSE:QBTS , IonQ NYSE:IONQ and Quantum Computing NASDAQ:QUBT have all swung wildly in recent months as investors try to get into the sector early on.
For instance, RGTI has risen more than 1,700% over the past 12 months, but only about 1.2% year to date.
This is not yet a profitable sector, so it's so hard to know where things are heading.
Will these companies survive as stand-alone businesses that eventually become independently viable? Or are they simply competing to be the one or two that make it to a point where they catch Big Tech's eye and become acquisition targets?
There are far more questions than answers right now regarding this high-tech industry. So, readers should understand that any investment at this early point is probably speculative in nature.
As for Rigetti, the firm operates quantum computers over the cloud, serving global enterprise, governmental and academic clients through its platform.
RGTI has developed a multi-chip quantum processor for scalable computing. The company can integrate this platform into any public or private cloud or hybrid thereof to suit a client's needs.
Rigetti will report Q2 results after the bell on Tuesday (Aug. 12). I could only find two sell-side analysts who cover the stock, and both have lowered their estimates for the company's results since quarter began.
Their consensus calls for an adjusted $0.04 loss per share on just $1.87 million of revenue. (Yes, that's million, not billion.)
Such results would compare to year-ago figures of a $0.09 adjusted loss per share on $3.09 million of revenues. That might not look so hot, but the industry isn't so hot yet.
Rigetti Computing's Technical Analysis
Now let's look at RGTI's chart going back 12 months:
Readers will note that after coming out of a late 2024 price spike, Rigetti gapped lower in early January, as denoted with a red oval in the chart's center.
This gap has not yet completely filled, even with the stock's recent rally in July.
Now, unfilled gaps don't always fill -- but eventually, most usually do.
What I see developing from the short consolidation period that came after that gap and into the present is what's known as an "ascending triangle" pattern (the purple field in the chart above).
This is historically a bullish pattern, where a stock generally hits resistance at or close to the same level over a period of time while continuously making higher lows. This forms the shape of a triangle, where the flat top line of resistance is the pivot.
Meanwhile, Rigetti's Relative Strength Index (the gray line at the chart's top) is better than neutral, but nowhere near being technically overbought so far.
And the stock's daily Moving Average Convergence Divergence indicator (or "MACD," marked with black and gold lines and blue bars at the chart's bottom) is not yet bullishly postured, but is close to being so.
If Rigetti breaks out from its ascending-triangle pattern, the stock's 12-day Exponential Moving Average (or "EMA," marked with a black line) could cross above its 26-day EMA (the gold line). The histogram of the 9-day EMA (the blue bars) could also go positive. All of that could be taken as technically bullish.
(Moomoo Technologies Inc. Markets Commentator Stephen “Sarge” Guilfoyle had no position in RGTI at the time of writing this column, but was long QUBT and QBTS.)
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