$AAOI went from $160 Monday to $110 Friday on an offering dump — that's a brutal 30% haircut in four sessions. Sentiment whipsawed hard.
Looking for a relief bounce here over the next few days. The panic flush on dilution usually creates a short-term low, especially when the move was this violent and fast. Not calling a bottom, just expecting some mean reversion after capitulation.
Entry bias around current levels if we see volume dry up or a bounce off $110 support. Invalidation if we break and hold under $105. Target first move back toward $120–$125 zone for the relief trade.
This is a scalp setup, not a hold. Offerings reset structure — wait for the dust to settle before any real conviction long.
Looking for a relief bounce here over the next few days. The panic flush on dilution usually creates a short-term low, especially when the move was this violent and fast. Not calling a bottom, just expecting some mean reversion after capitulation.
Entry bias around current levels if we see volume dry up or a bounce off $110 support. Invalidation if we break and hold under $105. Target first move back toward $120–$125 zone for the relief trade.
This is a scalp setup, not a hold. Offerings reset structure — wait for the dust to settle before any real conviction long.