Keep an eye on Microsoft (MSFT).

Oversold at $413.94, the tech giant is sitting at strong support dating back to August. It’s also oversold on RSI, MACD and Williams’ %R. Plus, since August, every time MSFT tests this support line, the stock jumps shortly after. We expect to see the same thing happen again near term.

Helping, the company just unveiled a new quantum chip – Majorana 1 – which it “expects to speed up the usage of quantum computing to solve industrial-scale problems in the coming years, not decades,” said Microsoft, as noted by Seeking Alpha. “Microsoft said the chip provides the path to create a million-qubit chip that can fit in the palm of a hand.”

In addition, according to CEO Satya Nadella, this is a breakthrough in the advancement of quantum computing.

“Most of us grew up learning there are three main types of matter that matter: solid, liquid, and gas. Today, that changed,” Nadella said. “After a nearly 20-year pursuit, we’ve created an entirely new state of matter, unlocked by a new class of materials, topoconductors, that enable a fundamental leap in computing. It powers Majorana 1, the first quantum processing unit built on a topological core. We believe this breakthrough will allow us to create a truly meaningful quantum computer not in decades, as some have predicted, but in years.”

Sincerely,

Ian Cooper