Chart of the Week: Ciena
Hey everyone. Happy Wednesday. Time to show you our chart of the week. So this week, for the first Wednesday in June, it’s gonna be Ciena; symbol CIEN.
Just a reminder, they will have earnings coming out Thursday morning – tomorrow morning – before the open. So just be aware of that.
I’m not too concerned or bothered about that. I know the stock’s probably going to be pretty volatile after earnings. It was last time around in March. But I do like the chart here, so let’s take a look at it.
As you can see, the stock has just been on an absolute tear since late fall of 2025. You can see it was back around $140. Today it’s about $612. By my math, that’s about a 500% gain – or almost 500% gain – on some pretty strong volume over the past seven, eight months.
And you can see here, back in February when it reported numbers, the stock dipped to near the 50 day moving average and really took off in the month of February.
It had earnings out – they had some numbers that came out in February – but earnings came out in March. It dropped a little bit. And ever since it dropped there at about $300, it’s more than doubled in a little over three months. It’s been on amazing, amazing journey here.
Do we think there’s more upside? Absolutely. The stock comes down to the relative strength at about the 50 level, seems to bounce off of it every single time. Five times already. More recently, it bounced there when the stock dipped to about $500 and it furiously picked up buyers.
More recently than that – just last week – it pulled down to about the 55 level on the RSI and is still moving higher.
MACD is still on a sell signal here. But I would say that’s not bearish. I would say that’s just meaning that the pace of the price action has simply slowed down a little bit. It’s well above the 50 day moving average. It’s above the 8 day moving average, it’s above the 20 day moving average. So it’s just basically slowing down a little bit, that trajectory to the upside.
Money flow is strong, it’s bullish. And again, it’s above all these relevant moving averages. And I just don’t see this thing slowing down much at all. Obviously, if they give some poor guidance on the earnings, that’s a whole different story.
As it is right here, I think that Ciena really has some room to get up to $700, perhaps about $750, which would be about a 20-23% gain from where we’re at right now.
I remember Ciena back in the day. It was one of those optimal names back in the dot-com days. It’s a survivor, and it’s transformed itself into something related to memory and storage and AI.
So take a look at Ciena when you get a chance here.
