IonQ stock (NYSE: IONQ) has formed a very bearish pattern which has the potential to take the price well below its current levels. The stock of the quantum computing company is currently down 42% from its yearly highs which shows the intensity of the local downtrend.
Last month, IonQ shares made a lower low on the weekly chart, confirming the bearish breakdown. Even though the stock is up 34% from the lows, it is quite likely that this recovery turns out to be just a dead cat bounce.
According to the latest IonQ news, the price target for the company’s stock has been lowered by Goldman Sachs from $14 to $13. This further contributes to the bearish outlook for the stock.
IonQ Stock Price Technical Analysis
The reason why I am bearish on NYSE: IONQ is due to the breakdown from the head & shoulders pattern. The technical analysis shows that the price target of this breakdown could be as low as $5.50. However, there is a very strong support around $7 which may come into effect if bears gain momentum.
This bearish IonQ stock price prediction can be invalidated if the price breaks back above the neckline of the head & shoulders pattern which currently lies around $14.75 on the following chart.