Applied Optoelectronics, Inc (AAOI. NASDAQ)

29 November 2017



Technical Summary: There is so much to say about the chart of AAOI that we were worried that there would not be enough space to annotate everything. The reason for this is due to the stocks volatility and the amount that it trades. After its IPO the stock traded largely sideways for a few years before it found the wind at its back and appreciated from $20 per share at the start of 2017 to $100 by August. This move was not without its volatility and involved two significant pull backs. Both of these pull backs followed up with a short basing period before the stock exploded for further upside. Its final move to the upside involved the stock appreciating about 70% in a few weeks before becoming obviously overextended. The stock then gapped down on significant earnings selling before beginning and equally volatile downtrend. The stock currently looks like it is attempting to form a base. However it is not buyable at this point and the stock remains with significant overhead supply.

There is so much to say about the chart of AAOI that we probably do not have enough space!

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