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.
By Christian Tharp •
This story originally appeared on StockNews
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.
Click Here to Read the Greatest Trading Book Ever Written
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.
Want to Discover More Great Trades?
I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don't work at all.
That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!
5 WINNING Stock Chart Patterns
Have a good trading day!
Good luck!
Christian Tharp, CMT
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.
