Chart of the Week: Aehr Test Systems
Hey good morning everyone. Happy Wednesday. Time for our chart of the week for August 12. This week we’re gonna be taking a look at Aehr Systems; AEHR is the symbol.
Let’s take a look at this chart. Looks like it’s ready to make another big move up like it did in the spring, in April. So let’s take a look at this one here.
Following this huge massive move up here, the stock went sideways for a little while. And you can see with the box over here, you could see how the sideways action over here actually took it all the way up to an all-time high of about $122-125. And then it’s pulled down a little bit.
But I’m gonna pull back on this square here for a little bit, and show you a bullish pattern that has shown up as well on Aehr Systems here.
What is that? That is the W pattern. So a W pattern means it pulls down over here to make its first low, comes up and tries to test that high, it gets rejected, comes back down, tests that low successfully, and then carves out the right side of the base over here. And you can see it reflects a W pattern.
And it’s about ready to break out through those recent highs at about $110-112.
Good volume here when the stock popped over here as well.
So once we get over this level, what are we talking about here? This one over here, this particular day. Big volume here on that day on the stock.
So if we get above that level – the high – let’s call it about $112-110 – we get above that high, the stock’s really got some nice room to move to the upside. I’m probably talking about $130-140.
We’ve had some good volume on days when the market’s up and the stock has been up as well.
Good bull signal on the MACD.
Relative strength has been very consistent. Higher highs, higher lows on this. And you can see the channel being in drawn in right there on the relative strength.
So take a look at Aehr Systems over here again. Once it gets through some of this congestion over here, this little base that we had built back in the spring – April, May, and early June – once it gets through this congestion over here, I think it’s got some clear skies up much higher than that.
So take a look at Aehr. Thanks so much for watching.
