Applied Optoelectronics is Setting Up for a Big Move Applied Optoelectronics, Inc. (AAOI) is trading within a range and at some point will break it's resistance or support level.
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Applied Optoelectronics, Inc. (AAOI) is trading within a range and at some point will break it's resistance or support level.
Applied Optoelectronics, Inc. (AAOI) engages in the design and manufacture of optical communications products. Its products include optical devices, such as laser diodes, photodiodes, related modules and circuitry, and equipment for applications in fiber-to-the-home, cable television, point to point communications and wireless.
Take a look at the 1-year chart of AAOI below with added notations:
AAOI has fallen into a large trading range over the past few months. While in the range, the stock has formed a resistance area at $9 (red), and a level of support at $7 (green). AAOI is headed back towards the middle of the range, but at some point, the stock will have to either break the resistance or the support.
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The possible long position in the stock would be on a breakout above $9. The ideal short opportunity would be on a break below $7.
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AAOI shares were unchanged in premarket trading Thursday. Year-to-date, AAOI has declined -9.40%, versus a 16.94% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.Applied Optoelectronics is Setting Up for a Big Move appeared first on StockNews.com