Applied Optoelectronics has been surging since finding support around 22.55 in April. We can see that price has since more than doubled, tagging $49.85 last week before retreating this week. Note that this was a previous resistance pivot in June as well as October 2017. AAOI Daily Chart(click to enlarge) Key Resistance/Support:- The $49.85-$50.00 resistance is now a key one. AAOI is not bullish unless it pushes above $50. Otherwise, it is simply in a period of consolidation after a period of declining price action.- As far as support, we can see that today's (7/18) trading has brought price action to a rising trendline support. - Below $43, we can see a dip to the $40-$40.15 area. This is a key support area and a bullish market will likely hold above $40. - Finally, we can also monitor the RSI and anticipate support as it approaches 40. If the market is going to maintain the prevailing bullish momentum, the daily RSI should hold above 40, forgiving a brief violation.Target/Upside:- If the bullish outlook remains the case, and price pushes above $50 with the $60 mark in sight. Note that the $60 area is essentially a support/resistance pivot, which gives us more reason to anticipate resistance here. AAOI Weekly Chart(click to enlarge)