Applied Optoelectronics Inc. $AAOI has been consolidating since June 2019 following a persistent decline since the highs in 2017, which briefly breached $100 a share. Price has broken below $9 in 2019, but has mostly held above $8.50. AAOI Daily Chart(click to enlarge)Consolidation; Price Bottom?- As we can see on the daily chart, AAOI has been consolidating above $8.50, and mostly under $11-$11.50 area.- In the past couple of weeks, price has bounced off the support and is now challenging the resistance area.- I think $12, which was a previous support, will still be a key resistance- But there are already some signs of a price bottom.- The bullish price action in late August/early-September has been sharp. - The RSI has held mostly above 40 and is now pushing at 70.- These are signs that at least bears are no longer in control. Key Support:- As we can see on the weekly chart, this price bottom is being formed right on top of a historic low that was just above $8.00.- In the past 3 times when price bounced up from this area, it at least pushed to $22 area. - Therefore, I think if price pushes above $12, I think there is a chance AAOI would bounce back up to $20 even if it does not turn bullish. AAOI Weekly Chart(click to enlarge)