$AAOI has surged up and it’s clearly not being held—several consecutive long bearish candles have directly smashed through the moving averages. In the short term, there are no signs of a bottom.
$AAOI - Empty
Trading framework:
Entry: 130.50 - 131.50
Stop Loss (SL): 133.50
Take Profit 1 (TP1): 125.70
Take Profit 2 (TP2): 123.00
Take Profit 3 (TP3): 120.00
Market analysis:
After this move came down from above 161, the price has fully broken through the short- and medium-term moving average system. The two key levels above at 140 and 150 have clearly turned into resistance zones. When it’s been selling down recently, volume has also expanded, indicating that selling pressure is still being released. There’s simply no capital willing to step in at this level to catch the falling knife. As long as this 133.5 defense line is not broken with increased volume returning above it, this extremely weak market is likely to continue, following momentum, to test the previous low around 125 or even deeper areas. Going short in line with the trend remains the most stable option right now.
$AAOI - Empty
Trading framework:
Entry: 130.50 - 131.50
Stop Loss (SL): 133.50
Take Profit 1 (TP1): 125.70
Take Profit 2 (TP2): 123.00
Take Profit 3 (TP3): 120.00
Market analysis:
After this move came down from above 161, the price has fully broken through the short- and medium-term moving average system. The two key levels above at 140 and 150 have clearly turned into resistance zones. When it’s been selling down recently, volume has also expanded, indicating that selling pressure is still being released. There’s simply no capital willing to step in at this level to catch the falling knife. As long as this 133.5 defense line is not broken with increased volume returning above it, this extremely weak market is likely to continue, following momentum, to test the previous low around 125 or even deeper areas. Going short in line with the trend remains the most stable option right now.