COHR exhibits a bullish breakout pattern supported by key moving averages and positive momentum indicators.

Coherent's stock has a very interesting chart . They had a really good summer, then lost some of those gains. It seems they are trying to get back on track, but explain to us about "Coherent" because the discussion about optics platforms has become a big part of the new conversation about the development of artificial intelligence.

Yes. That's exactly what you'd like to see; Not only does the stock reach record highs, but when it declines, where do investors return to enter? They are coming back in, and I think this move suggests an upward breakout.

Okay, Kevin, do you also see a possibility of a breakout here for Coherent stock? Yes, of course. We have seen little consolidation or a triangle pattern forming where we are recording lower peaks, but we are still recording higher troughs.

Now, if you look at the stock at this time last year , you will find higher highs and higher lows, with a very strong trend line. Okay, we've reached level 440 almost. This 440 level formed a kind of peak pattern, so to speak.

Now, we have seen a slightly larger pullback with the 200-day moving average being tested several times, but we have managed to hold it. Now, we are breaking through the 20-day and 50- day moving averages, as well as the 200-day moving average, and reaching this resistance zone at around $338.

If we can get past that, 360 will be the first resistance zone, and from there, we'll simply look at the peak levels of the cycle, if you like. So, the next level will be $400 , then a return to those higher levels.

The MACD indicator also appears in a bullish formation with the 12-day exponential moving average above the 26- day moving average, and the relative strength index is making higher lows.

Therefore, this graph is actually very positive. Even if a drop occurs, I am still very close to the peak point here. Therefore, you are still looking at the 200-day moving average as a strong support area.

As you know, I mentioned the interesting setup we had , and the peaks achieved during the summer. But when you look at the long-term outlook for Coherent stock , KG, what do you see there?

Yes, I mean that the situation is still somewhat unclear here . You have once again a major trend line, and a simple bullish flag pattern, which means we are in an uptrend, but in a consolidation phase.

We have that wedge pattern, and we are trying to break out on the weekly chart. All the lines are still largely compatible with each other. Now, what makes you more optimistic about this name and this chart is that the weekly MACD indicator has just started to cross over with the 12-period exponential moving average above the 26-period moving average.

This is usually your follow-through indicator , where you can see 5 to 6 or even 8 weeks of upward movement here. So, this tends to be more optimistic than pessimistic. Again, if a decline occurs, the 200-day moving average will be key, and the 50-week moving average at around $271 will be the next support area.

But this stock looks very strong in terms of breakout potential here, Mike .

Okay, Mike. So, how do we trade this stock then? Do any of those levels that Kevin just pointed out enter into your trading calculations? Yes, I, umm, really think so. And remember, this is a name that keeps repeating the same kind of pattern.

Here's the breakout where you saw, as you know, support emerge and now it's going up . So, um , I'm looking for a deal above 341.76, slightly higher than our current level. Therefore, I will look at the "Broken Wing Butterfly " strategy at 370-380-385.

If we manage to get it for two dollars, we may lose those two dollars if we drop or do not reach our levels, but our maximum return is 8 dollars. So, we're looking at a risk-to-reward ratio of 4 to 1.

And I think that really plays a role in everything. The technical indicators are in agreement, the fundamentals are in agreement, and the market as a whole is in agreement.