Oclaro, Inc. (NASDAQ:OCLR) has been in a clear uptrend since early July, supported by the rising 100-day EMA. On Friday, it had a nice move on the upside, closing above all major EMAs on heavy volume. Considering the strong momentum over the past week, I think that the 10 dollars range will be tested in coming sessions.
Technically, the stock is bullish with a lot of indicators showing up. The daily MACD has moved up to touch its sliding signal line in neutral territory, while the RSI has crossed above its 50 line. The bullish crossover in the ADX chart also adds to my conviction. In addition, we saw bullish options activity with buyers of the Jan 10 calls. Keep this stock on your watch list for next week.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.