Quantum Computing Stock Due for a Short-Term Bounce

Core Viewpoint - IonQ Inc's stock has seen a significant increase of 7.2% to $49.41 following Jefferies' initiation of coverage with a "buy" rating and a price target of $100, indicating strong investor interest in the quantum computing sector as potential growth stocks are sought for 2026 [1]. Group 1 - IonQ's stock has recently experienced a decline due to a tech selloff, moving away from its record high of $84.64 on October 13, but today's price action may signal a short-term bounce as it found key technical support [2]. - The stock is currently within 0.75 of the 200-day moving average's 20-day average true range (ATR), having remained above it 80% of the time in the past two weeks and 80% of the last 42 trading sessions, with historical data suggesting a 75% chance of a price increase one month later, averaging a 26.3% gain [3]. - A potential short squeeze could benefit IonQ, as short interest has risen to 19.2% of the stock's available float, requiring over two days for shorts to cover based on the average trading pace [4]. Group 2 - IonQ's Schaeffer's Volatility Index (SVI) is at 83%, which is in the lowest percentile of its annual range, indicating that near-term option traders are expecting extremely low volatility, making current premiums the cheapest in the past year [4].