Click on the above image to enlarge
Anyway, back to the serious issue here, I am currently expecting this stock to move up to at least $8 and above. However I foresee that this stock will hit a major resistance at around $8.80 area. The reason is I am targeting this stock to correct at least 50% of the recent downturn. I am taking the recent downward move and divided by half to get my long target. It is further supported by the technical indicators such as MACD, RSI and Stochastic Indicator. I am expecting that those indicators will move up to touch the red circle above before it starts to hit the resistance and then move futher downward. It will coincide nicely with the 50% retracement for the downward move that I have predicted.
I will consider to sell this stock only if it can hit above $8.40 and above. Otherwise, I will patiently wait for this stock to perform as per my expectation. After all, AXTI is a fundamental sound stock with a good solig earning growth. Kindly refer to my previous post for the revenue growth report.
I will post my earning report once I sold this stock. At the meantime, kindly stay tune to this blog for further Sucker Punch activities!
The stock of AXT has taken a hugh hit over the last year. I never would try and pick a precise bottom on a stock like AXT. I would instead average down when buying the stock. This is a very simple and often effective method of buying larger amounts of shares as the shares decline in price.
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