D-Wave Quantum Inc. (QBTS) stock slipped in Tuesday premarket trading as traders took some chips off the table following Monday's nearly 20% surge. That rally came after the company announced an agreement with AT&T Inc. (AT&T (T)) to bring quantum computing into its network operations — a real commercial use case that got the market excited.

The broader market wasn't helping either. Nasdaq futures were down 0.92% and S&P 500 futures were off 0.03%, adding a bit of gravity to the pullback. The question now is whether D-Wave can build on that momentum or if Monday was just a one-day party.

The AT&T Deal That Lit the Fuse

Monday's rally was all about the AT&T agreement, which highlighted a practical application for D-Wave's technology. The news didn't just lift D-Wave — it also boosted other quantum names like IonQ Inc. (IonQ (IONQ)), Rigetti Computing Inc. (Rigetti (RGTI)), and Quantum Computing Inc. (Quantum Computing (QUBT)).

What made the move particularly interesting was that it happened while the broader tech sector was getting hammered. The Nasdaq fell 1.09% on Monday, and the technology sector dropped 2.18%, yet quantum stocks rallied. That kind of divergence tells you the group is trading on its own momentum, not just riding the market's coattails.

Technical Levels to Watch

From a chart perspective, D-Wave is still in recovery mode. The stock is trading 3.3% below its 20-day simple moving average of $19.68 and 16.2% below its 50-day SMA of $22.71. The longer-term picture is also a bit heavy — the 50-day SMA crossed below the 200-day SMA back in March, forming a death cross. That pattern typically means rallies face selling pressure until the stock can reclaim those key averages.

On the bright side, momentum isn't stretched. The Relative Strength Index sits at 48.66, which is right around neutral. That suggests Monday's move was more of a bounce attempt than an overbought breakout, leaving room for further upside if buyers step in.

Here are the key levels to keep an eye on:

• Key Support: $16.00 — a level where buyers have stepped in before, so if the pullback deepens, that's the line in the sand.
• Key Resistance: $22.00 — a round number that also sits near the 50-day SMA. If D-Wave can push through that, it would be a bullish signal.

Earnings on Deck

Attention is already shifting to D-Wave's second-quarter earnings report, due out on August 6. Here's what Wall Street is expecting:

• EPS Estimate: Loss of $0.10 per share (wider than the $0.08 loss a year ago)
• Revenue Estimate: $4.04 million (up from $3.10 million a year ago)

Analysts are broadly bullish. The stock carries a Buy consensus with an average price target of $39.00 across 18 analysts, ranging from a low of $30.00 to a high of $43.00. Recent analyst moves include Benchmark initiating coverage with a Buy and a $30.00 target on July 27, and Mizuho reiterating an Outperform rating while raising its target to $35.00 on June 15.

So the setup is interesting: a stock that just got a catalyst, is still below its moving averages, has neutral momentum, and has earnings coming up. Whether the AT&T deal is enough to change the narrative — or if the market needs to see the numbers — is the big question.

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