Lumentum is a strong performer up ~480% in a year due to AI demand, but currently in a short-term pullback within an uptrend.

Well, it doesn't matter from which angle you look at this graph. I believe this stock has outperformed. Absolutely, and it's a great starting point from your last interview. As you know, this is the kind of stock they need to build AI systems on the back-end technical side.

Photonics, optical fibers – these things are essential for the high-speed, low-latency communications that all data centers here need. Superior and explosive performance. Lumentum's stock rose by approximately 480% over the past year,

So, you know, it's much stronger than something that was already strong to begin with, compared to the S&P index which rose 16%.

We can also see Lumentum and the entire photonics sector, and companies such as Air Test Systems, Ciena, A Mat, Nokia and Corning, all experiencing very strong growth.

So, looking at the chart more specifically now, our one-year candlestick chart for Lumentum, we see that the recent path has been in the form of an upward-sloping channel here.

We have two white lines, both pointing upwards here. But, you can see that in the short term as well, in the shorter term, we formed a high point and started sliding downwards from there with our blue trend line.

Our recent lows reached 785. That was a high point we saw before a small upward gap prior to the earnings announcement. That is now the lower limit of our latest range.

You can also see our roof, 998, our red line there. We did see one fluctuation during the day above that level, but for the most part, that was the top of our range.

1050 and 1085.68 are also two prominent high points that we can see in our recent trends. So, if we look at the moving averages we follow next, our 5-day exponential moving average in dark blue, 934.68, represents one week of trading activity here.

So, this will be roughly where we are now or when the market opens; it is our shortest-term and most sensitive moving average here.

We can also see the 21-day exponential moving average in greenish-blue at 911.46, which is roughly the level where we recorded our lowest point during our last session here. So, that was supportive, and it illustrates how these moving averages act as support during uptrends and as resistance during downtrends here.

Therefore, look for these levels to be potentially supportive.

When we look at the Relative Strength Index (RSI) at the lower level of our chart, our momentum indicator also shows a triangle shape. So, we have a very straight line that is almost horizontal, extending across those peaks.

It points downwards, however. However, we also have a steeper green trend line that rises across the bottoms.

So, we are above the 50 midline, with a more upward bias, but in reality there is no very strong directional bias in terms of our indicator. Therefore, look for a breakout that goes beyond either of these lines to get more directional signals.

Finally, the trading volume profile study shows that most of the trading activity was between 8:30 and 9:55, and our control point is at 9:04 or 8:40.54.

correct. So, this would be a very short-term and aggressive type of trading. We will simply be looking to sell a weekly "put vertical" at the end of this week, relying solely on the edge of our expected move limits, which is approximately plus or minus 7.3%.

You know, sort of this will be the ultimate range we're looking for, but what we've been hoping for is just to hold our recent lows. One "Vertical Put" contract was sold on October 2nd at a price of 900-895 for a balance of 150.

So, with only four days until expiry, the balance of 150 is the maximum profit, and the maximum possible loss is 350.

Therefore, the risk-to-reward ratio here is slightly worse than two to one. Um, the expected move is 7.3% and our breakeven point of 898.50 is about 3.7% down. So, as I said, a more aggressive look here is searching for power in this name that has seen itself very quickly becoming a vital part of this emerging artificial intelligence ecosystem.