AAOI will eventually recover but bottom hasn't arrived yetCurrently a falling knife while its sector is suffering cyclicality. AAOI will need to come clean on whether AMZN and FB have been lost. Chinese competition is pulling the sector down with possibly more supplies than demand. Add to that the weakened investor confidence in AAOI management. My suggestion is that you either short this or stay on the sidelines until after next ER. If ER disappoints, this will bleed to $25 if not below. Also, looks like institutions are dumping this since the beginning of December: fintel.io
AAOI
AAOI - Possible H&S formation short from $57.47 to $$42.53AAOI seems forming a possible Head & Shoulder formation. It has fair bit of insider selling, however short float is also high. Its just starting to break through support label & if it breaks through this label it has good down side potential.
* Trade Criteria *
Date First Found- June 27, 2017
Pattern/Why- Possible H&S formation
Entry Target Criteria- Break of $57.47
Exit Target Criteria- $42.53
Stop Loss Criteria- $62.23
Please check back for Trade updates. (Note: Trade update is little delayed here.)
AAOI – Applied Optoelectronics on watch for next week 02-25AAOI – Applied Optoelectronics, Inc.
With strong earnings and forecast AAOI has broken into an all time high territory. This can continue to trend higher but we may see some profit takers early next week that can push the price down. I took a short scalp trade late afternoon on Friday last week from high $48 and covered at low $48. This stock would definitely make 5% - 9% move on Monday so worth to put on a watch.
AAOI hits LT resistance prior to earningsAfter hitting a 2015 long term high,aaoi appears to be entering a corrective wave: which is good if we hope price goes up afterwards. But if it consolidates or enters a second corrective phase, a downtrend could follow: and with a break below the fib fan resistance level, that could very well happen. Best, Matt