On Thursday, MicroAlgo Inc. (MLGO) announced a development that sounds like it came straight out of a sci-fi novel: a multi-objective evolutionary algorithm designed to automate quantum circuit design and improve quantum computing efficiency. In plain English, they've built a system that can design quantum circuits automatically, without needing a human expert to sketch out the blueprint first.

The company says the technology can generate quantum circuits using a task-universal component library, meaning it doesn't require pre-designed circuit structures. It balances multiple performance metrics—circuit accuracy, depth, width, and gate usage—to optimize designs for resource-constrained quantum hardware. Think of it as a self-driving car for quantum circuit design: it figures out the best route on its own, considering traffic, fuel efficiency, and time.

MicroAlgo tested the algorithm using two well-known quantum algorithms: the Quantum Fourier Transform and Grover's Search Algorithm. The system successfully generated both traditional and alternative circuit structures that achieve the same computational functions. That's like proving there's more than one way to skin a quantum cat.

According to MicroAlgo, this technology could simplify quantum algorithm development by reducing the need for deep expertise in quantum physics and computer science. The company also said the algorithm may improve optimization for future applications in chemical simulation, cryptography, and financial modeling. So, potentially, this could make quantum computing more accessible to a wider range of industries.

Now, let's talk about the stock. From a trend perspective, MLGO is trying to stabilize after a steep 12-month drawdown of 91.55%. That's a brutal drop, and the longer-term damage still matters—the stock remains well below its 200-day simple moving average (SMA) of $6.53. But in the near term, it's holding 0.8% above its 20-day SMA ($4.09) and 7.4% above its 50-day SMA ($3.84). That keeps the short-term structure constructive, even as premarket selling hits.

The MACD (moving average convergence divergence) is the cleaner momentum read right now. It's above its signal line, and the histogram is positive, which points to improving momentum versus the prior downswing. In plain English, when MACD is above its signal line, it suggests downside pressure is easing and buyers are starting to defend pullbacks more consistently.

The moving-average picture is mixed. The 20-day SMA is above the 50-day SMA—a bullish short-term crossover—but the 50-day SMA is still below the 200-day SMA, reflecting the "death cross" that formed in June 2025 and the bigger downtrend that hasn't fully reset. Traders will also note the stock is trading 3.8% below its 100-day SMA ($4.28), a nearby "line in the sand" that often acts like overhead supply during rebounds.

Here are the key levels to watch:

• Key Resistance: $4.50 — a nearby round-number area where rebounds can stall
• Key Support: $3.50 — a nearby floor that sits above the $3.02 52-week low zone, where dip-buyers may look to defend

MicroAlgo develops central processing algorithms and optimization technologies designed to improve computing performance, reduce power consumption, and enhance data processing efficiency. As of Friday premarket, MLGO shares were down 5.71% at $4.29.