Technical Pulse: AEM Holdings Ltd June 9, 2020 1614


AEM Holdings Ltd (SGX: AWX) miraculous rebound in mid-March 2020 indicate an expanded 3rd wave since the stock broke the $2.32 resistance level. Prices have begun to exhibit signs of a slow down after the stock failed to move past the resistance of $3.40 after prices broke out of the falling wedge in late May. Based on the technicals, the stock will enter into a correction downward trend before a bullish rebound continues:

  1. The potential double top at $3.40 indicates a weaker than expected bullish momentum.
  2. The stock is currently in a 3-3-5 regular flat formation, which makes up a potential wave 4. The stock is currently on sub-wave C.
  3. Although the bearish candle on Monday is a failed dark cloud cover, the candle displayed is still a relatively strong bearish candle, as such, the sell-down of wave C is thus continued.
  4. RSI is exhibiting a bearish divergence with multiple oversold signals above the 60 line.



*Timeline of the trade should be between 1-3 weeks from the date issued.

*The overall trend is still on the upside with prices trending above all 3 major moving averages. The short call is to take advantage of the corrective sell down and the stock should have a strong rebound at $2.68-$2.93



Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

Green dotted line = 22 periods Moving average

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