Watch these Super Micro Computer stock price levels in light of the recent slump

Super Micro Computer (SMCI) shares fell again on Tuesday after Hindenburg Research disclosed a short position in the server maker and published a report accusing the company of, among other things, accounting anomalies following a three-month investigation that also interviewed former senior executives.

While Nvidia (NVDA), another darling in the artificial intelligence (AI) space, has rebounded strongly after a recent correction ahead of its quarterly earnings report, Super Micro's stock is still languishing toward its August lows on concerns that more expensive next-generation AI chips could squeeze profit margins.

The stock fell 2.6 percent in regular trading on Tuesday and another 1.5 percent in after-hours trading to $593.30. The stock has lost more than 20 percent since the beginning of the month.

Below, we take a closer look at the specs in Super Micro's chart and point out key price levels to look out for.

Failed retest of the descending triangle

After hitting a record high in early March, shares of Super Micro fluctuated within a descending triangle before falling below the pattern's lower trendline last month. Since then, price has made a failed retest attempt, finding selling pressure around the closely watched 200-day moving average (MA). In addition, the 50-day MA recently approached the 200-day MA and is on the verge of forming an ominous death cross, a chart pattern that often marks the start of a new downtrend.

Given the weak technicals on the server maker's chart, investors should keep an eye on three key price levels that could come into play if the stock falls.

Watch these price levels for further weakness

The first area to watch is around $479, near the August low. Investors will likely be watching to see if buyers can defend this area, which marks a local low following the stock's downtrend between mid-July and early August. The chances of a bounce here would increase significantly if the Relative Strength Index (RSI) simultaneously indicates an oversold reading below the 30 threshold.

Failure to hold this key level could result in a downtrend to $357, an area on the chart that could attract buying interest near a trendline between two highs from August 2023 and January of this year, which represent previous record highs for the stock.

Any further downside could take shares down to the $260 area, where investors may look for buying opportunities near the June swing high that capped an impulsive uptrend between late April and early June 2023. This area also corresponds to a series of similar trading levels from August to December of last year.

The commentary, opinions and analysis expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more information.

At the time of writing, the author does not own any of the securities mentioned above.