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D-Wave Quantum (QBTS) hit resistance at $45 and declined, after some insiders sold shares, likely to cover tax obligations. QBTS stock is still holding above $40, but many believe the broader rally that carried it up to this level from $1 a year ago may be fading.

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However, that is unlikely to be the case, as the rally has actually accelerated, and the recent profit-taking move could translate into yet another drastic move to the upside in the next few weeks.

In fact, many are already positioning for it. If we look at options open interest a month out, some traders are betting that the house of cards may tumble next month, whereas others see a surge to $61. Some think the stock will end up at $35.

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But when you sort it out by volume and weed out the stale trades, this is what it looks like.

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I would take the $35 range many bears are betting on as a floor price by mid-November, with $61 as a price point QBTS could soar to if it maintains its current trajectory.

Why the bulls can win

Seasonal trends are in your favor.

The market remains exceedingly bullish, and Oct to November has been strong for D-Wave last year, and the year before it. Considering October has started on a bad note already, this leaves room for November and December to be green yet again.

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Plus, the broader market remains exceedingly bullish, with quantum computing being seen as the “next big thing” after AI. D-Wave has managed to take advantage of this through a PR offensive, which translated into a higher share price, and directly beefed up its balance sheet through large at-the-market offerings earlier this year.

The long-term trend remains up for QBTS stock, likely to $60 by year-end unless the broader market itself shifts gears.

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