Can LITE Retest $402 After Big Bounce?
$Lumentum(LITE)$
Lumentum Holdings Inc.(LITE) Soared +11.49%: Bullish Reversal on High Volume, $374 High Retest
Latest Close Data
Closed at $370.66 on 2026-01-28, surging +11.49% (+$38.21). This places the stock just -7.98% below its 52-week high of $402.79.
Core Market Drivers
The significant rally is primarily driven by strong institutional and retail buying interest, evidenced by a net positive capital flow of ~$43 million for the day. While no specific news is cited, the price action suggests a positive re-rating or anticipation of upcoming catalysts within the optical networking and laser sector.
Technical Analysis
Volume was robust at 3.62M shares (Volume Ratio 0.86), confirming the breakout move. The 6-day RSI jumped to 60.14 from oversold levels, indicating strong short-term momentum. However, MACD remains negative at -5.77, suggesting the longer-term trend is still in a recovery phase, but the DIF line is turning up.
Key Price Levels
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Immediate Pivot: $370.98 (previous resistance, now turned support).
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Primary Support: $338.98.
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Strong Resistance: $402.79 (52-week high). A break above $374 (today's high) could signal a run towards this level.
Valuation Perspective
Forward P/E sits at 63.97, significantly above its historical average of 35.32 and the +1 Std. Dev. of 50.70, indicating the market is pricing in high future growth expectations.
Analyst Targets
22 analysts have an average price target of $336.24. Sentiment is bullish with 5 Strong Buy, 13 Buy, and 5 Hold ratings, though the current price has surpassed the average target.
Weekly Outlook
Expect consolidation near the $370-$374 zone. A successful hold above $371 could target a retest of the $402 high. A failure and break below $338 support would invalidate the bullish setup and target lower.
Risk Disclaimer
This content is for informational purposes only and not financial advice. Past performance does not guarantee future results. Investing involves risk, including potential loss of principal. Conduct your own research before making any investment decisions.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
