D-Wave Quantum Inc. (QBTS) shares are pulling back Tuesday after Monday's impressive 20% surge, when enthusiastic retail traders piled into the quantum computing stock. But the real story isn't the single-day gain; it's what happened at the $28.70 level.
D-Wave punched through resistance with Monday's move, and that breakthrough could be the beginning of something bigger. Understanding why requires ditching the idea that markets behave like chess or mathematics.
Markets Are People, Not Equations
Here's the thing about markets: they're irrational. Chess has rules. Math has logic. Markets have people, and people get emotional and make impulsive decisions. In the short term, that's what actually moves stock prices.
When a stock trends higher, it's because buyers are getting anxious. They're worried about missing out, so they start outbidding each other, pushing shares higher. When a stock hits resistance and stalls, it's because there's a wall of sellers offering shares at that price. Buyers can take their time and fill their orders without pushing the price up.
But things can flip quickly. If sellers start getting nervous about missing a move lower, they'll undercut each other on price, and suddenly you've got a downtrend.
What Happens When Resistance Breaks
Sometimes buyers simply overpower the sellers at resistance. That's what happened with D-Wave Quantum when it broke through $28.70 on Monday.
When a stock trades above former resistance, it often means the sellers who created that ceiling have either filled their orders or canceled them altogether. Now buyers are back to competing with each other, forced to outbid if they want shares. That competition can spark a fresh uptrend.
Breakouts aren't guarantees, but they tend to be followed by continued strength. The psychology shifts. What was once a ceiling becomes a floor. D-Wave may be setting up for exactly that kind of move, and traders are watching to see if the breakout holds.




