We are seeing a lot of big moves in many names during this earnings season. Applied Optoelectronics $AAOI just released its Q2 earnings report, and it beat market estimates. The optical-networking company reported second-quarter profit of $8 million, or 40 cents a share, on sales of $87.8 million, down from $117.4 million a year ago. After adjusting for stock-based compensation and other effects, the company claimed earnings of 64 cents a share, down from $1.54 a share a year ago. Analysts on average expected adjusted earnings of 44 cents a share on revenue of $77.8 million, according to FactSet. Applied Opto guided for earnings of 39 cents a share to 52 cents a share on sales of $75 million to $81 million. (MarketWatch.com) AAOI Daily Chart (click to enlarge) After-Hour Spike:- The daily chart from tradingview shows AAOI closing the 8/7 session at $37.23 a share, right above the 200-day simple moving average (SMA).- We noted that this 200-day simple moving average (SMA) was the last line of defense for the bullish scenario that has developed in the past few months.- After the earnings release, price jumped up to around $45, a 20%+ jump.- In the previous update on AAOI, I noted that a break above $44 would be a strong sign that bulls are still in control. - I think we will be seeing price challenge the critical resistance in the $49-$50 area in August.