IONQ Inc IONQ is getting a much-needed boost, surging over 11% at one point on Monday after announcing a major quantum computing milestone.

The company's flagship IonQ Forte Enterprise is now available globally via Amazon.com Inc AMZN Braket and the IonQ Quantum Cloud, giving businesses and researchers access to advanced quantum capabilities.

But with shares still down more than 40% year to date, is this the spark IonQ stock needs to shake off its bearish grip?

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Quantum Leap Or Dead Cat Bounce?

IonQ's stock has been deep in the red for 2024, but the Amazon partnership injected some optimism. Forte Enterprise's integration with Amazon Braket — a fully managed quantum service on Amazon Web Services — opens up new opportunities for industries such as life sciences, finance and manufacturing to leverage quantum power.

Chart created using Benzinga Pro

While the long-term potential is promising, the technicals tell a different story. IonQ stock at $22.92 sits below its eight-day and 50-day simple moving averages, reinforcing a strongly bearish trend. The Moving Average Convergence Divergence (MACD) indicator at a negative 1.70 also signals weakness, while the Relative Strength Index (RSI) at 43.51 suggests the stock is nearing oversold territory.

The lone bright spot? The 200-day simple moving average at 20.69, which offers a bullish signal.

Betting On The Quantum Future

IonQ has made headlines before with bold advancements in quantum computing, but the stock has struggled to keep up. With this latest milestone, the company is proving its tech is serious, but investors remain cautious.

While the Amazon partnership is a big step forward, IonQ still faces an uphill battle winning over Wall Street. The stock's ability to break out of its bearish cycle will depend on whether this quantum momentum translates into real-world revenue growth.

For now, IonQ bulls have something to hold onto, but skeptics are still waiting for proof that this rally is more than just a short-lived quantum fluctuation.

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Photo: Courtesy IonQ