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Optical communication stocks lead the rebound; will the AI optical cycle continue?
Lucas美股机会
joined discussion · Aug 20 20:23

MRVL rallied on positive news, LITE tested key support levels; logic for building positions in Circle and CSIQ at lows

1. $Marvell Technology (MRVL.US)$ Yesterday, MRVL was driven bynews of a partnership related to Google, surging nearly 10% against the trend,those who entered positions with me around $220 in advance, MRVL should nowalready have decent profits，My advice is straightforward: continue to hold as normal, if the stock price can push higher subsequentlyConsider taking profits on the first tranche when the price approaches $260,The remaining core position can be held with a view toward further upside, butfor those who missed the rally entirely,the current level may be relatively disadvantageous, as the stock price has already surged. At this point,it is not advisable to chase highs simply on positive news.，If you are determined to participate,I recommend adopting a phased entry strategy,with the initial entry waiting for the $230 level.This price pointis considered relatively aggressive.For the initial entry position, if the broader tech sector continues to correct anda second round of pullback occurs, you can consider waiting for the $200 level to add to your position. 2. $Lumentum (LITE.US)$ The other core stock in this module isLITE.which already adjusted yesterday into the $830–$800 range I previously highlighted,If you are already positioned,，my view remains that you should not panic simply due to a 5% or 8% loss,Looking at the overall price structure, LITE's first waveof the rally was very complete, while the $800 level below serves as crucial sentiment support for August...
1. $Marvell Technology (MRVL.US)$ Yesterday, MRVL was driven bynews of a partnership related to Google, surging nearly 10% against the trend,those who entered positions with me around $220 in advance, MRVL should nowalready have decent profits，My advice is straightforward: continue to hold as normal, if the stock price can push higher subsequentlyConsider taking profits on the first tranche when the price approaches $260,The remaining core position can be held with a view toward further upside, butfor those who missed the rally entirely,the current level may be relatively disadvantageous, as the stock price has already surged. At this point,it is not advisable to chase highs simply on positive news.，If you are determined to participate,I recommend adopting a phased entry strategy,with the initial entry waiting for the $230 level.This price pointis considered relatively aggressive.For the initial entry position, if the broader tech sector continues to correct anda second round of pullback occurs, you can consider waiting for the $200 level to add to your position.
1. $Marvell Technology (MRVL.US)$ Yesterday, MRVL was driven bynews of a partnership related to Google, surging nearly 10% against the trend,those who entered positions with me around $220 in advance, MRVL should nowalready have decent profits，My advice is straightforward: continue to hold as normal, if the stock price can push higher subsequentlyConsider taking profits on the first tranche when the price approaches $260,The remaining core position can be held with a view toward further upside, butfor those who missed the rally entirely,the current level may be relatively disadvantageous, as the stock price has already surged. At this point,it is not advisable to chase highs simply on positive news.，If you are determined to participate,I recommend adopting a phased entry strategy,with the initial entry waiting for the $230 level.This price pointis considered relatively aggressive.For the initial entry position, if the broader tech sector continues to correct anda second round of pullback occurs, you can consider waiting for the $200 level to add to your position. 2. $Lumentum (LITE.US)$ The other core stock in this module isLITE.which already adjusted yesterday into the $830–$800 range I previously highlighted,If you are already positioned,，my view remains that you should not panic simply due to a 5% or 8% loss,Looking at the overall price structure, LITE's first waveof the rally was very complete, while the $800 level below serves as crucial sentiment support for August...
2. $Lumentum (LITE.US)$ The other core stock in this module isLITE.which already adjusted yesterday into the $830–$800 range I previously highlighted,If you are already positioned,，my view remains that you should not panic simply due to a 5% or 8% loss,Looking at the overall price structure, LITE's first waveof the rally was very complete, and the $800 level below serves as crucial sentiment support for August. As long as $800 is not effectively broken,I do not believe we will enter an exaggerated downtrend.If $800 is subsequently breached and followed by a secondary deep retracement, we can wait for a lower level to execute a second average-down trade. Therefore, my current recommendation is to widen the gap between the two add-on positions. Do not rush to average down your cost basis blindly just because your initial position has a slight floating loss.

Next, I will recommend two low-position stocks with catch-up potential.
1. $Marvell Technology (MRVL.US)$ Yesterday, MRVL was driven bynews of a partnership related to Google, surging nearly 10% against the trend,those who entered positions with me around $220 in advance, MRVL should nowalready have decent profits，My advice is straightforward: continue to hold as normal, if the stock price can push higher subsequentlyConsider taking profits on the first tranche when the price approaches $260,The remaining core position can be held with a view toward further upside, butfor those who missed the rally entirely,the current level may be relatively disadvantageous, as the stock price has already surged. At this point,it is not advisable to chase highs simply on positive news.，If you are determined to participate,I recommend adopting a phased entry strategy,with the initial entry waiting for the $230 level.This price pointis considered relatively aggressive.For the initial entry position, if the broader tech sector continues to correct anda second round of pullback occurs, you can consider waiting for the $200 level to add to your position. 2. $Lumentum (LITE.US)$ The other core stock in this module isLITE.which already adjusted yesterday into the $830–$800 range I previously highlighted,If you are already positioned,，my view remains that you should not panic simply due to a 5% or 8% loss,Looking at the overall price structure, LITE's first waveof the rally was very complete, while the $800 level below serves as crucial sentiment support for August...
$Circle (CRCL.US)$ The first one is related to the stablecoin concept.Circle，We actually highlighted this stock for entry around $71.IThe core reason to continue focusing on Circle noworGiven the future growth potential of the stablecoin market,As the stablecoin market continues to expand, Circle, as a core player in this sector, theoretically still offers solid long-term growth prospects. From a technical perspective,Circle has spent nearly two months gradually forming a distinct rounding-bottom pattern.Year-to-date,it has not experienced any exaggerated consecutive surges.If you are bullish on the long-term prospects of the stablecoin market and Circle's future growth,you may consider accumulating positions in tranches during Circle's upcoming minor pullbacks.I maintain my initial upside target at $90–$100.
1. $Marvell Technology (MRVL.US)$ Yesterday, MRVL was driven bynews of a partnership related to Google, surging nearly 10% against the trend,those who entered positions with me around $220 in advance, MRVL should nowalready have decent profits，My advice is straightforward: continue to hold as normal, if the stock price can push higher subsequentlyConsider taking profits on the first tranche when the price approaches $260,The remaining core position can be held with a view toward further upside, butfor those who missed the rally entirely,the current level may be relatively disadvantageous, as the stock price has already surged. At this point,it is not advisable to chase highs simply on positive news.，If you are determined to participate,I recommend adopting a phased entry strategy,with the initial entry waiting for the $230 level.This price pointis considered relatively aggressive.For the initial entry position, if the broader tech sector continues to correct anda second round of pullback occurs, you can consider waiting for the $200 level to add to your position. 2. $Lumentum (LITE.US)$ The other core stock in this module isLITE.which already adjusted yesterday into the $830–$800 range I previously highlighted,If you are already positioned,，my view remains that you should not panic simply due to a 5% or 8% loss,Looking at the overall price structure, LITE's first waveof the rally was very complete, while the $800 level below serves as crucial sentiment support for August...
Another stock I believe offers good preemptive value amid the tech sector downturn isCanadian Solar (CSIQ).CSIQ surged nearly 7% yesterday.I believe this rally carries significant implications,namely, itleveraged Tuesday's market plunge to execute a clear, proactive sentiment repair.Currently, $14 is gradually emerging as a distinct short-term bottom.As long as the $14 level holds, CSIQ still has potential for catch-up gains,making itWhy are we turning our attention back to photovoltaics? The logic remains unchanged: AI data centers ultimately rely on power, and solar energy, as a crucial complement to energy storage, enjoys inherent long-term demand.Moreover, CSIQ's current valuation is not particularly high compared to other tech stocks that have seen continuous rallies,leaving ample room for catch-up growth. If you prefer not to continue participating in high-beta tech themes, consider prioritizing CSIQ as a next-stage rotation play at a lower entry point.
1. $Marvell Technology (MRVL.US)$ Yesterday, MRVL was driven bynews of a partnership related to Google, surging nearly 10% against the trend,those who entered positions with me around $220 in advance, MRVL should nowalready have decent profits，My advice is straightforward: continue to hold as normal, if the stock price can push higher subsequentlyConsider taking profits on the first tranche when the price approaches $260,The remaining core position can be held with a view toward further upside, butfor those who missed the rally entirely,the current level may be relatively disadvantageous, as the stock price has already surged. At this point,it is not advisable to chase highs simply on positive news.，If you are determined to participate,I recommend adopting a phased entry strategy,with the initial entry waiting for the $230 level.This price pointis considered relatively aggressive.For the initial entry position, if the broader tech sector continues to correct anda second round of pullback occurs, you can consider waiting for the $200 level to add to your position. 2. $Lumentum (LITE.US)$ The other core stock in this module isLITE.which already adjusted yesterday into the $830–$800 range I previously highlighted,If you are already positioned,，my view remains that you should not panic simply due to a 5% or 8% loss,Looking at the overall price structure, LITE's first waveof the rally was very complete, while the $800 level below serves as crucial sentiment support for August...
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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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