Finisar Climbing Out of the Basement (FNSR)

Finisar Corp. (Nasdaq: FNSR) is climbing out of the basement after an early June fourth quarter earnings report was shredded by investors. Shares fell nearly twenty-five percent in a single day after the company reported quarterly net income of $1.7 million, or 1 cent per share, while analysts were expecting 3 cents per share on $99.6 million in revenue.

Days after the earnings disaster, Finisar did receive a bounce from oversold conditions, but as it tested the $3 support level earlier this week, most investors seemed to think that the slight increase in share price was just a resetting of the oversold technical indicators that would create an opportunity for new lows.

However, Finisar shares held the $3 level and are up a healthy $.28 to $3.44. The move is raising eyebrows, indicating that Finisar shares could have established a double bottom, even though the earnings situation has not seen any changes.