$NASDAQ:AAOI Bullish Pennant Setup - 77% upside
AAOI is forming a bullish pennant. Here are my thoughts on a setup.
Buy-in Target:
Conservative - $39.50 after confirmation that a breakout is happening - My signal is when the stock closes above $39.50 with relatively higher volume.
Higher Risk/Reward - Purchase now (~$34) and set a stop loss at a point where it looks like the pennant is breaking down (~$32). This can be tricky because I've seen pennant patterns mutate into flag patterns (go from triangular to rectangular). If that happens they you'd want your stop set at ~$28.
Price Target: $69.34 - I'd probably start a trailing stop quote(%) around $66 with a 5% threshold. Doing this allows the stock to continue to climb, but gives you a stop if momentum starts to collapse.
I'm not a financial advisor and I'm not offering investment advice. Please consult with your own financial advisor prior to making investment decisions!
Good luck and I'm always happy to hear from you.
Good luck and I'm always happy to hear from you.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I'm not a financial advisor and I'm not offering investment advice. Please consult with your own financial advisor prior to making investment decisions!
Good luck and I'm always happy to hear from you.
Good luck and I'm always happy to hear from you.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.