Quantum Computing Stock Due for a Short-Term Bounce

IonQ Inc (NYSE:IONQ) stock is up 7.2% to trade at $49.41 today, after Jefferies initiated coverage on the quantum computing name with a "buy" rating and $100 price target. The stock, along with the rest of its sector, has attracted plenty of investor attention of late, particularly as traders look for potential growth stocks going into 2026.

Over the past few weeks IONQ has succumbed to the recent tech selloff, widening the gap from its Oct. 13 record high of $84.64. However, today's price action could be the start of a short-term bounce, particularly as the recent pullback found key technical support on the charts. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, IONQ is within 0.75 of the 200-day moving average's 20-day average true range (ATR). This is after remaining above it 80% of the time during the past two weeks and 80% of the last 42 trading sessions.

This signal has occurred five other times over the past 10 years, after which the stock was higher one month later 75% of the time with an average 26.3% gain. A move of similar magnitude would push the stock back up to $62.40.

A short squeeze could provide tailwinds as well. Short interest has been building, and now represents a hefty 19.2% of the stock's available float. It would take shorts over two days to cover, at the equity's average pace of trading. 

IONQ's Schaeffer's Volatility Index (SVI) of 83% sits in the lowest percentile of its annual range, implying that near-term option traders are pricing in extremely low volatility expectations. This means premium has not been cheaper in the past year, than it is right now.