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Optical communication stocks lead the rebound; will the AI optical cycle continue?
Lucas美股机会
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LITE shows signs of stabilization; position for MRVL's post-earnings pullback; short-term profit-taking strategy for UMAC

1 $Lumentum (LITE.US)$ LITE opened yesterdayafter surging to $970，During trading hoursit experienced some pullback, butwhat’s interesting is thatby the close, the stock price rebounded from $920and recovered. The daily chart ultimately closed witha doji star with a long lower shadow, this structure at leastindicates that there is stillsolid buying support at lower levels.
1 $Lumentum (LITE.US)$ LITE opened yesterdayafter surging to $970，During trading hoursit experienced some pullback, butwhat’s interesting is thatby the close, the stock price rebounded from $920and recovered. The daily chart ultimately closed witha doji star with a long lower shadow, this structure at leastindicates that there is stillsolid buying support at lower levels. Looking at the moving averages, if LITEcan subsequentlyWalk outpull up above the 5-day MA and quickly cross above the 10-day MA,it will form a new short-term bullish alignment.For investors who already reduced their positions at yesterday's highs,they can stillhold onto their remaining core positions.The second target above could be seen at $1,050. However,for those who completely missed the earlier moveand have not yet entered the market, nowthey can only adopt a more aggressivetrading strategy. I believe$930–$910can serve asthe new initial tranchefor phased position building. However,this must be stated clearly., at this levelit is no longer about bottom-fishing at low valuations，but rather a pullback entry into strong stocks trading at high levels, soyou must be well prepared for what followsincluding a potential second adjustment; the initialposition size should not be heavy. If subsequent market conditions trigger a correction, we will determine the entry point for the second add-on position based on the prevailing market environment. Another core holding in the optical module sector 2 $Marvell Technology (MRVL.US)$ MRVL, released its latest earnings reportafter hours,aroundRevenue slightly exceeded expectationsin the past year,Possibly because the stock price had already priced this in earlier...
Looking at the moving averages, if LITEcan subsequentlyWalk outpull up above the 5-day MA and quickly cross above the 10-day MA,it will form a new short-term bullish alignment.For investors who already reduced their positions at yesterday's highs,they can stillhold onto their remaining core positions.The second target above could be seen at $1,050. However,for those who completely missed the earlier moveand have not yet entered the market, nowthey can only adopt a more aggressivetrading strategy. I believe$930–$910can serve asthe new initial tranchefor phased position building. However,this must be stated clearly., at this levelit is no longer about bottom-fishing at low valuations，but rather a pullback entry into strong stocks trading at high levels, soyou must be well prepared for what followsincluding a potential second adjustment; the initialposition size should not be heavy. If subsequent market conditions trigger a correction, we will determine the entry point for the second add-on position based on the prevailing market environment.
1 $Lumentum (LITE.US)$ LITE opened yesterdayafter surging to $970，During trading hoursit experienced some pullback, butwhat’s interesting is thatby the close, the stock price rebounded from $920and recovered. The daily chart ultimately closed witha doji star with a long lower shadow, this structure at leastindicates that there is stillsolid buying support at lower levels. Looking at the moving averages, if LITEcan subsequentlyWalk outpull up above the 5-day MA and quickly cross above the 10-day MA,it will form a new short-term bullish alignment.For investors who already reduced their positions at yesterday's highs,they can stillhold onto their remaining core positions.The second target above could be seen at $1,050. However,for those who completely missed the earlier moveand have not yet entered the market, nowthey can only adopt a more aggressivetrading strategy. I believe$930–$910can serve asthe new initial tranchefor phased position building. However,this must be stated clearly., at this levelit is no longer about bottom-fishing at low valuations，but rather a pullback entry into strong stocks trading at high levels, soyou must be well prepared for what followsincluding a potential second adjustment; the initialposition size should not be heavy. If subsequent market conditions trigger a correction, we will determine the entry point for the second add-on position based on the prevailing market environment. Another core holding in the optical module sector 2 $Marvell Technology (MRVL.US)$ MRVL, released its latest earnings reportafter hours,aroundRevenue slightly exceeded expectationsin the past year,Possibly because the stock price had already priced this in earlier...
Another core holding in the optical module sector
2 $Marvell Technology (MRVL.US)$ MRVL, released its latest earnings reportafter hours,aroundRevenue slightly exceeded expectationsin the past year,This may be because the stock price had already priced inpart of the expectations beforehand,so the stock did not rise after the earnings report was released;instead, it fell by nearly 8%, bringing the share price back to around $220.However, I believe that for those who missed out on MRVL earlier,thispost-earnings pullback may not necessarily be a bad thing.，MRVL itself has exposure to bothoptical interconnects and custom chip narratives.If you remain bullishon AI infrastructure, I believe the $212–$220 range remains a solid entry zone for an initial position, with the first upside target at $275.
1 $Lumentum (LITE.US)$ LITE opened yesterdayafter surging to $970，During trading hoursit experienced some pullback, butwhat’s interesting is thatby the close, the stock price rebounded from $920and recovered. The daily chart ultimately closed witha doji star with a long lower shadow, this structure at leastindicates that there is stillsolid buying support at lower levels. Looking at the moving averages, if LITEcan subsequentlyWalk outpull up above the 5-day MA and quickly cross above the 10-day MA,it will form a new short-term bullish alignment.For investors who already reduced their positions at yesterday's highs,they can stillhold onto their remaining core positions.The second target above could be seen at $1,050. However,for those who completely missed the earlier moveand have not yet entered the market, nowthey can only adopt a more aggressivetrading strategy. I believe$930–$910can serve asthe new initial tranchefor phased position building. However,this must be stated clearly., at this levelit is no longer about bottom-fishing at low valuations，but rather a pullback entry into strong stocks trading at high levels, soyou must be well prepared for what followsincluding a potential second adjustment; the initialposition size should not be heavy. If subsequent market conditions trigger a correction, we will determine the entry point for the second add-on position based on the prevailing market environment. Another core holding in the optical module sector 2 $Marvell Technology (MRVL.US)$ MRVL, released its latest earnings reportafter hours,aroundRevenue slightly exceeded expectationsin the past year,Possibly because the stock price had already priced this in earlier...
Let me follow up with everyoneon UMAC, the drone concept stock recommended yesterday.This stockdelivered avery impressiveoversold bounceyesterday, surging over 10% in a single session and reclaiming the $26 level,and from a weekly chart perspectiveUMAC this timeis retracing to the 10-week moving average,Afterward,It has emergeda fairly standard technical rebound.For those who have already entered at lower levels,you may considertaking some profits after today's market open,while holding the remaining core position with a second target of $30.If you missed the move entirelyand feel that sentiment in the tech sector is lacking, prompting you to chase hot themes instead,I believe the area around $25 could serve as a more aggressive entry pointfor re-entry positions,but it is crucial to emphasize herethat UMAC and the core tech sector do not follow the same logic;it lacks strong earnings visibility,and is driven moreby thematic speculation and technical trading., soThis type of stock is not suitable for averaging down.If you insist on entering at $25, you must reduce your position size and set $22 as a clear risk-control level.
1 $Lumentum (LITE.US)$ LITE opened yesterdayafter surging to $970，During trading hoursit experienced some pullback, butwhat’s interesting is thatby the close, the stock price rebounded from $920and recovered. The daily chart ultimately closed witha doji star with a long lower shadow, this structure at leastindicates that there is stillsolid buying support at lower levels. Looking at the moving averages, if LITEcan subsequentlyWalk outpull up above the 5-day MA and quickly cross above the 10-day MA,it will form a new short-term bullish alignment.For investors who already reduced their positions at yesterday's highs,they can stillhold onto their remaining core positions.The second target above could be seen at $1,050. However,for those who completely missed the earlier moveand have not yet entered the market, nowthey can only adopt a more aggressivetrading strategy. I believe$930–$910can serve asthe new initial tranchefor phased position building. However,this must be stated clearly., at this levelit is no longer about bottom-fishing at low valuations，but rather a pullback entry into strong stocks trading at high levels, soyou must be well prepared for what followsincluding a potential second adjustment; the initialposition size should not be heavy. If subsequent market conditions trigger a correction, we will determine the entry point for the second add-on position based on the prevailing market environment. Another core holding in the optical module sector 2 $Marvell Technology (MRVL.US)$ MRVL, released its latest earnings reportafter hours,aroundRevenue slightly exceeded expectationsin the past year,Possibly because the stock price had already priced this in earlier...
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Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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