Swing Trading Plan
Holding Period
1-6 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
QBTS is forming a bull flag pattern with a structure score of 14.2 and breakout score of 13.0, indicating solid technical quality. Current price at $20.39 sits between key support at $18.33 and resistance at $22.00. Volume is slightly elevated at 1.07x average (19.5M vs 18.2M 20-day average), providing modest confirmation. RSI at 51.88 shows neutral momentum with room to run higher. The pattern sits 59.92% above its 52-week low, suggesting recovery momentum. Win probability of 76.09% indicates above-average odds of successful breakout with conservative target of $21.06.
Stock Context
D-Wave reported Q2 2026 earnings on August 6, 2026, posting lower-than-expected revenue despite a 1,120% surge in bookings. The company generated $24.59M in 2025 revenue (up 178% YoY) but remains deeply unprofitable with EBITDA near -$42.4M and net losses around -$18.4M. Recent catalysts include Canadian government funding of C$300K for annealing software R&D, publication of peer-reviewed Nature research on quantum gate fidelity, and expanded deployments with NTT DOCOMO and Nasdaq Verafin. Analyst coverage remains constructive: Jefferies initiated a Buy with $45 target (December 2025) and Wedbush assigned Buy at $35. The stock rallied from mid-$16s in mid-July to near $20, suggesting institutional and retail conviction in the quantum computing narrative despite profitability headwinds.
What to Expect
A successful bull flag breakout above $22.00 resistance would target the conservative measured move of $21.06, with potential extension higher if volume confirms. Historical data suggests bull flags average win rates near 76% as indicated by the pattern's win_probability score. Volume confirmation is critical—breakout should occur on above-average volume relative to the flag formation. Invalidation level is key support at $18.33; close below this price would negate the bullish structure and suggest continuation of the prior downtrend. The setup favors higher prices if breakout follows, but structure remains fragile without volume participation.
Risk Factors
QBTS carries elevated risk: beta of 3.7 signals extreme volatility relative to the broad market. Company is unprofitable with negative cash burn and dependence on lumpy system sales and grant funding rather than recurring revenue. Recent insider selling in early August spooked traders. A bullish pennant formed July 21 (33-point pattern quality score) could fail if execution doesn't follow through. Sector regime is neutral (score -0.02), offering no tailwind. Volatility at 1.23 (20-day) amplifies downside exposure if sentiment shifts. The August 6 earnings miss and subsequent stock decline suggest momentum may be fragile, and any negative guidance revisions or customer delays could violently reverse this pattern. Momentum traders, not fundamentals, are driving the setup.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is QBTS a good swing trade?
QBTS scored 81 out of 98 on our bull flag scan, with a 76% historical win probability over a 1-6 trading days hold. Strong setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $20.39, with a conservative target of $21.06 and a stop loss at $19.27.
What would invalidate this bull flag setup?
A close below the stop loss at $19.27 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical bull flag setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.
Market & Sector Regime
Market
Bullish
0.60
-1.0
0
+1.0
Technology Sector
Bullish
-0.02
-1.0
0
+1.0
Other Patterns Detected Today
Bullish Pennant
23 days in pattern
Good
33.0