Lumentum, Qualcomm, Corning partner on AI optical tech; shares rise
Shares rose following the news that Lumentum, Qualcomm, and Corning have formed a partnership in the field of AI optical technology.
To give you the conclusion first, the current stock price is positioned between the 20-day low support line and the high resistance line, so I considered entering with the expectation of a rebound accompanied by an increase in trading volume.
To state the conclusion first, upon a rebound accompanied by increased volume, we will take profits if it reaches the resistance level of $1026.76, and cut losses if it breaks below the 20-day low support level of $784.47.
RSI (14) stands at 53.4, indicating neutral momentum, moving averages are in a bullish alignment (short-term above medium/long-term), trading volume is at 2.25 times the 20-day average, and the fluctuation rate over the past 7 days recorded -5.9%.
To give you the conclusion first, we entered the position targeting an expected return of 2.5%, anticipating a rebound based on the positive catalyst of an AI optical technology partnership, a 2.25-fold increase in trading volume compared to the 20-day average, and a bullish moving average alignment (정배열). However, the actual result was a loss of -11.5%, resulting in a FAILED rating. Although we aimed for a rebound between the 20-day low support line and high resistance line as the stock price plunged rapidly from 1,067.03 to 824.13 with a volatility rate of -5.9% over the 7 days immediately preceding the entry, we failed to account for the fact that the downward pressure and volatility already underway could not be fully overcome, ultimately leading to the stop-loss level.
To begin with the conclusion, in future trading, even if trading volume increases and favorable news emerges, we will adopt a more conservative approach when evaluating expectations of a rebound from support levels during periods of sharp short-term declines, such as the downward trend (-5.9% volatility) observed over the past 7 days. In particular, rather than focusing solely on the position between support and resistance lines, we will adjust our execution plan to enter positions only after confirming that rebound attempts amid a downward trend technically lead to a definitive trend reversal.