CORRESPONDENCE COURSES
AEM: Quite a good spike caught then some profit taking. Price 1.45. Uptrend may not be over…
Author: Trading Impossible | Joey Choy
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Just about 2 weeks back, we spotted AEM approaching the key 1.30 resistance level…
This level was key has it has been trading below since May last year and buyers were just not able to lift it off..
Tested for close to 4 times but failed always..
But this time, it was different, there were some signs of the uptrend starting to take shape as it approach the 1.30 resistance.
Hence, some upside targets were drawn with a potential break out expected…
See what I mean below..
Early last week, the bullish move that we were waiting eagerly for indeed came,
It was attempting to break the 1.30 level and buyers were ready to push it higher..
Some bullish price actions was spotted as it happened and upside target reiterated as seen below.
You can see that after 1.30, there was quite a huge gap to clear and hence quite a good reward to risk ratio for any long position to be taken.
The reversal to the upside looks set to continue as per our targets..
Over the past few days, the 1.40 resistance gave way too,
And we have managed to push higher to a high of around 1.53 before some profit taking came back..
This is normal given that we have surged from 1.30 all the way to more than 1.50 in a few days which is more than 14% gain.
For now, likely to see some support coming back from 1.40 where it may consolidate above before attempting to push towards 1.60 target as drawn…
The uptrend still looks good if it holds above 1.40 now and there may be more legs to the rally after a rest..
Still in our watch list…
