Lumentum Holdings Inc (LITE +$3.70 or +6.13% to $64.05) rallied to its second-best close with +55% above average volume today. It was highlighted in yellow with new pivot point cited based on its 6/09/17 high plus 10 cents in the earlier mid-day report (read here). Subsequent volume-driven gains above the pivot point for new highs may trigger a new (or add-on) technical buy signal. It has rebounded near prior highs after finding support above its 50-day moving average (DMA) line and prior highs in the $55 area during the recent consolidation.

The high-ranked Telecom - Fiber Optics firm reported earnings +53% on +11% sales revenues for the Mar '17 quarter and fundamentals (C and A criteria) remain strong. Its annual earnings (A criteria) history has been strong, helping it earn the highest possible Earnings Per Share (EPS) rank of 99, well above the +80 minimum guideline.

It found support at its 200 DMA line after dropped from the Featured Stocks list on 4/12/17 when last shown in this FSU section with an annotated graph under the headline, "Weak Technical Action Hurts Outlook for Fiber Optics Firm".

The number of top-rated funds owning its shares rose from 266 in Dec '15 to 446 in Mar '17, a reassuring sign concerning the I criteria. It has a Timeliness Rating of A and a Sponsorship Rating of B. Its current Up/Down Volume Ratio of 1.7 is an unbiased indication its shares have been under accumulation over the past 50 days.

Charts used courtesy of www.stockcharts.com

Lumentum Holdings Inc (LITE -$1.45 or -3.17% to $44.25) suffered its 8th loss in the span of 9 sessions as it fell further below its 50-day moving average (DMA) line with higher volume and closed near the session low. It closed -20.9% off its 52-week high and it will be dropped from the Featured Stocks list tonight. Weak action has completely negated all of the gains it had made following the prior breakout and additional rally to new highs. A rebound above the 50 DMA line is needed for its outlook to improve.

Disciplined investors always limit losses by selling any stock that falls more than -7% from their purchase price. The weak technical action again begs a question as to why prior buying demand has not yet returned to show support. LITE cleared a pivot point based on its 12/09/16 high plus 10 cents when highlighted in the 2/08/17 mid-day report (read here). The big gain and strong finish triggered a convincing technical buy signal.

It was last shown in this FSU section with an annotated graph on 3/14/17 under the headline, "Support Elusive Following Prior Demand". Its fundamentals remain strong after it reported earnings +73% on +21% sales revenues for the Dec '16 quarter, continuing its strong earnings track record. This high-ranked leader from the Telecom - Fiber Optics group has shown sales revenues growth helping it match with the fact-based investment system's fundamental guidelines. Its annual earnings (A criteria) history has been strong, helping it earn the highest possible Earnings Per Share (EPS) rank of 99, well above the +80 minimum guideline.

Lumentum Holdings Inc (LITE -$1.75 or -3.90% to $43.10) slumped below prior highs in the $44-45 area previously noted as important support to watch, raising concerns. Disciplined investors always limit losses by selling any stock that falls more than -7% from their purchase price. The weak technical action begs a question as to why prior buying demand has not yet returned to show support. Subsequent damaging losses violating its 50-day moving average (DMA) line would raise more serious concerns and trigger a worrisome technical sell signal.

LITE cleared a pivot point based on its 12/09/16 high plus 10 cents when highlighted in the 2/08/17 mid-day report (read here). The big gain and strong finish triggered a convincing technical buy signal. It reported earnings +73% on +21% sales revenues for the Dec '16 quarter, continuing its strong earnings track record. However, its rally was short lived and it has given back every bit of its progress since last shown in this FSU section with an annotated graph on 2/08/17 under the headline, "Gap Up Gain and Strong Finish Triggered Technical Buy Signal".

This high-ranked leader from the Telecom - Fiber Optics group has shown sales revenues growth helping it match with the fact-based investment system's fundamental guidelines. Its annual earnings (A criteria) history has been strong, helping it earn the highest possible Earnings Per Share (EPS) rank of 99, well above the +80 minimum guideline.

Lumentum Holdings Inc (LITE +$5.65 or +14.05% to $45.85) finished strong after highlighted in yellow with new pivot point cited based on its 12/09/16 high plus 10 cents in the earlier mid-day report (read here). The big gain and strong finish above the pivot point triggered a convincing technical buy signal. It reported earnings +73% on +21% sales revenues for the Dec '16 quarter, continuing its strong earnings track record. It gapped up today hitting a new high. Volume and volatility often increase near earnings news.

A rebound above its 50-day moving average (DMA) line with a volume-driven gain was noted on the prior session as it helped its outlook improve. The stock's Relative Strength rating has improved from 81 to 87 since 1/05/17 when dropped from the Featured Stocks list. It stayed well above prior lows and above its 200 DMA line during its consolidation since last shown in this FSU section with an annotated graph on 12/08/16 under the headline, "Challenging its High With Big Volume-Driven Gain".

This high-ranked leader from the Telecom - Fiber Optics group was previously noted in the 10/28/16 mid-day report - "Reported Sep '16 earnings +96% on +21% sales revenues helping its quarterly sales and earnings history better match with the fact-based investment system's fundamental guidelines." Its annual earnings (A criteria) history has been strong, helping it earn the highest possible Earnings Per Share (EPS) rank of 99, well above the +80 minimum guideline.

Lumentum Holdings Inc (LITE +$3.90 or +9.85% $43.50) was highlighted in yellow with pivot point cited based on its 10/07/16 high plus 10 cents in the earlier mid-day report (read here). Little resistance remains while rebounding toward prior highs after a choppy consolidation above and below its 50-day moving average (DMA) line. Subsequent gains with at least +40% above average volume for new highs are needed to trigger a proper technical buy signal.

This high-ranked leader from the Telecom - Fiber Optics group was previously noted in the 10/28/16 mid-day report - "Reported Sep '16 earnings +96% on +21% sales revenues helping its quarterly sales and earnings history better match with the fact-based investment system's fundamental guidelines." Its annual earnings (A criteria) history has been strong, helping it earn the highest possible Earnings Per Share (EPS) rank of 99, well above the +80 minimum guideline.

High Ranked Telecom - Fiber Optics Firm - Thursday, July 13, 2017

Weak Technical Action Hurts Outlook for Fiber Optics Firm - Wednesday, April 12, 2017

Support Elusive Following Prior Demand - Tuesday, March 14, 2017

Gap Up Gain and Strong Finish Triggered Technical Buy Signal - Wednesday, February 8, 2017

Challenging its High With Big Volume-Driven Gain - Thursday, December 8, 2016