Fabrinet

FN: Riding the Optical Supercycle - Price Breakout and Retest Technical Setup: Bullish Momentum Confirmed - Price successfully cleared major resistance at the $520 level and completed a clean structural retest. - All EMAs are in ascending order in both the daily and weekly timeframe, indicating strong uptrend. - Weekly RSI reached 70 from a high base (60s zone), signaling strong upward momentum in the week ahead. - Daily MACD on a pull-back, accumulating power for the next upward move. - The current "break and retest" validates a new support floor for higher targets. Fundamental Catalysts: Record Growth & AI Demand - Fabrinet reported record Q2 2026 revenue of $1.13 billion (up 36% YoY). - AI data center demand drives massive orders for high-bandwidth 800G and 1.6T optics. - High-performance computing (HPC) revenue surged nearly 456% quarter-over-quarter. - Management issued optimistic Q3 2026 guidance, projecting further revenue and EPS growth. Industry Sentiment: The 2026 Optical Revolution - The global "Optical Supercycle" is fundamentally reshaping data center architecture. - Industry peers like Lumentum (LITE) and Coherent (COHR) already rallied to record-highs. - Hyperscalers are prioritizing optical connectivity to eliminate AI processing bottlenecks. - Fabrinet remains a critical manufacturing partner for industry leaders like Nvidia. - Strategic pivots toward higher-margin business lines are enhancing the long-term investment narrative. Trade Outlook - Conviction: High, supported by a "beat-and-raise" earnings profile and strong industry sentiment from record Hyperscaler CAPEX. - Strategy: Buy on the confirmed retest of previous resistance levels ($520-$550 zone). - Target: Watch for a move towards the $630 psychological zone (previous high). There is a high chance of a new All-Time-High towards the $700+ level. - Risk Management: Thesis could break if weekly price closes below the retest zone.

FN - more than 10% decline ahead Fabrinet seems to have finished minor wave 2 up and should begin wave 3 of intermediate 3. This move should show a good strength and prices should reach more than 10% of decline and up to the most probable first stop target at 48.25. If prices cross up 62.60 this analysis should be reviewed. FOLLOW SKYLINEPRO TO GET UPDATES.

Fabrinet - started to trace wave 3 down FN is finishing subminuette wave 1 from intermediate wave 3 down. It could have a counter-trend move up up to around 63.00 before continuing its trend down to levels below 45.00. If prices crosses up 67.00, this analysis should be reviewed. FOLLOW SKYLINEPRO TO GET UPDATES.