CIEN extends higher from massive base

We got a request to update the chart for CIENA Corp. (CIEN), which is indicated higher pre-open after this morning's earnings release. Our Straight from the Chart blog flagged a 24-year big base in the making on October 9.

The October rally above 154-157 (October 2001 high and a 161.8% Fibonacci extension) put in a 24-year big base for CIEN with longer-term upside potential to 300. Fibonacci retracement targets from the 2000 peak to the 2009 low come in at 406 (38.2%), 530 (50%), and 655 (61.8%) and offer additional longer-term objectives.

We are using the October high and the December month-to-date low from 194 to 186 as risk management levels if CIEN begins to struggle. However, 200 provides a "psychological" round figure level to watch.

Chart 1: CIENA (CIEN): Monthly chart