The Catalyst

QBTS just delivered a textbook bull flag breakout that had technical traders salivating all week. The stock ripped through $17 resistance like it was paper, exploding 14% higher on volume that was 162% above average. This wasn’t some random pop—it was a technical setup that played out exactly as drawn up.

The bull flag pattern that formed over the past week was absolutely pristine. After the initial surge to $17, QBTS consolidated in a tight range with declining volume, exactly what you want to see in a healthy pullback. Today’s breakout confirmed the pattern with authority.

Why This Matters

Quantum computing has been the sleeper tech sector that’s finally waking up. While everyone’s been focused on AI chips, quantum computing companies like D-Wave have been quietly building the infrastructure for the next computing revolution. The technical breakout here isn’t happening in a vacuum—it’s coinciding with increasing institutional interest in quantum computing plays.

D-Wave’s position as a pure-play quantum computing company makes it the perfect vehicle for investors looking to capitalize on this emerging sector. The company’s quantum annealing technology has real-world applications in optimization problems, and we’re seeing more enterprises exploring quantum solutions.

The volume surge today suggests institutional accumulation. When a stock breaks out on this kind of volume expansion, it’s usually a sign that bigger players are positioning for a sustained move higher.

Technical Setup

The bull flag that formed here was absolutely picture-perfect. After the initial breakout attempt last week, QBTS pulled back in a controlled manner, forming a tight pennant-shaped consolidation. The highs were getting lower, the lows were getting higher, and volume was drying up—classic bull flag behavior.

Key observations from the daily chart:

  • Clean breakout above $17 resistance with gap up
  • Volume explosion to 98.2M shares vs 37.5M average
  • Bull flag pattern completion targeting $24 area
  • RSI breaking above 70 with momentum confirmation

The pattern measured about $7 from the initial surge, giving us a target around $24 from the $17 breakout level. That’s another 25% upside from current levels if this plays out according to the textbook.

Is QBTS Stock a Buy After Bull Flag Breakout?

The technical setup here is compelling for momentum traders. Bull flags are among the most reliable continuation patterns, especially when they break out on volume like this. The clean structure of the flag and the explosive volume on the breakout suggest this move has legs.

However, quantum computing stocks can be volatile, and QBTS is still a relatively small company in an emerging sector. The technical setup is there, but position sizing is crucial given the volatility.

Today’s Price Action

This morning’s gap up at $17.18 immediately put bulls in control. There was no morning dip for the bears to work with—just straight-up buying from the open. The stock never looked back, grinding higher throughout the session.

QBTS Stock Chart Analysis: QBTS 5-minute chart showing bull flag breakout with sustained momentum above $17 resistance - July 17, 2025

Intraday Highlights

  • 9:30 AM: Gap up open at $17.18, immediately above flag resistance
  • 10:00 AM: Early buying surge pushes to $18.50 on heavy volume
  • 11:30 AM: Brief consolidation around $18.20, no meaningful pullback
  • 1:00 PM: Afternoon acceleration begins, pushing toward $19
  • 2:30 PM: Volume spike drives stock to session highs near $19.50
  • 3:45 PM: Strong close at $19.24, holding near daily highs

The intraday action was exactly what you want to see on a breakout—sustained buying pressure with no significant pullbacks. Each dip was bought immediately, showing strong underlying demand.

Volume Analysis

Volume was the story today. At 98.2M shares, we saw 162% above average volume, which is massive for a breakout. This wasn’t retail FOMO—this was institutional accumulation. When you see volume spikes like this on technical breakouts, it usually means bigger players are positioning.

The volume pattern throughout the day was constructive. Heaviest volume came on the morning gap and the afternoon acceleration, exactly when you’d expect institutional buyers to be active. The sustained volume throughout the session suggests this wasn’t a one-hour wonder.

Pattern Analysis

Bull flags are continuation patterns that typically see a 75-80% success rate when they break out on volume. Today’s breakout checked all the boxes:

Perfect Flag Structure:

  • Initial surge from $15 to $17 (the pole)
  • Controlled pullback to $16.20 with declining volume
  • Tight consolidation lasting 5 trading days
  • Clean breakout above $17 with volume expansion

Measured Move Target:

  • Flag pole height: ~$2 ($15 to $17)
  • Breakout level: $17
  • Target: $17 + $2 = $19… already achieved
  • Extended target: $24 (using full pattern height)

The fact that we’ve already hit the conservative target suggests this pattern has more room to run toward the extended $24 target.

What Price Target for QBTS Stock?

Based on the bull flag pattern, the initial target of $19 has been achieved. The extended target sits around $24, which represents another 25% upside from current levels. Key resistance levels to watch are $20 (psychological), $22 (next technical level), and $24 (pattern target).

When to Take Profits on QBTS?

For swing traders, consider taking partial profits at $20 and $22, with a final target at $24. The extended pattern target at $24 represents a logical area to take full profits, especially if we see volume expansion failure or bearish divergence in momentum indicators.

Where to Place Stop Loss for QBTS?

Conservative stop loss should be placed below the bull flag low at $16.20. More aggressive traders might use $17.50 as a stop, which is the breakout level. Any close below $17 would negate the breakout and suggest the pattern failed.

The Bottom Line

QBTS delivered a textbook bull flag breakout that technical traders dream about. The pattern was clean, the volume was there, and the execution was flawless. With quantum computing finally getting institutional attention and the technical setup pointing to $24, this could be the beginning of a significant move.

The risk/reward here is attractive for momentum traders who respect the volatility. The pattern target at $24 offers 25% upside from current levels, while the stop loss at $16.20 keeps the downside manageable.

This is exactly the kind of technical setup that separates the wheat from the chaff in momentum trading. Clean pattern, explosive volume, and a clear target—what more could you ask for?