AXT continues strong post-earnings run; optical stocks gain
AXTI has maintained a strong upward trend following its earnings announcement, and optical-related stocks are generally showing an upward trend.
Based on a strong upward trend with a volatility of +19.0% over the past 7 days and positive news following the earnings announcement, entry is being considered. However, the profit-taking target at this point is $90.39 and the stop-loss is $36.73, which are values derived from REPORTING.
If the strong upward trend continues after the earnings announcement, we will take profits at $90.39. Conversely, if downward pressure increases and the price collapses, we will cut losses at $36.73.
At the entry point, the technical indicators are as follows: RSI(14) is 68.0, moving averages are misaligned, trading volume is 0.80 times the 20-day average, and the recent 7-day volatility is +19.0%.
The historical price response of this stock following similar past events is as follows: 2026-07-03 +12.2%, 2026-07-06 -1.5%, 2026-07-14 -1.8%, 2026-07-17 +23.2%, 2026-07-31 +46.6%.
Based on the strong upward trend following the earnings announcement, a recent volatility of +19.0%, and an RSI(14) of 68.0, a predicted return of +3.5% was anticipated; however, the actual result closed at -15.1% FAILED. On August 17, it peaked with an opening price of 85.9, a high of 97.79, and a closing price of 95.97, but on August 18, it experienced a sharp correction with an opening price of 88.7, a high of 94.86, a low of 80.37, and a closing price of 82.31, failing to withstand the downward pressure.
In the recent 7-day period, the volatility has been high, and the RSI has reached 68.0, indicating that we have entered a short-term overheating phase. Therefore, we should refrain from chasing purchases and apply stricter risk management. In the next trading session, we will carefully adjust the entry point by considering the overbought levels of technical indicators and the increased volatility more conservatively.