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:
*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
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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