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Take a look at the 1-year chart of AAOI below with added notations:
AAOI has fallen into a large trading range over the past few months. While in the range, the stock has formed a resistance area at $9 (red), and a level of support at $7 (green). AAOI is headed back towards the middle of the range, but at some point, the stock will have to either break the resistance or the support.
