Friday, February 2, 2018

The Inexorable AEM

Read my 28 Dec 2017 post on my accurate prediction of AEM price movement: http://superphang.blogspot.sg/2017/12/when-will-aem-hit-my-current-target.html

I mentioned in the post that AEM investors will get an Angpao two weeks before Chinese New Year and it is happening. It closed on 1 Feb 2018 at $5.50, surging 10.66% after the company lifted its one-day trading halt with some announcements. 

The climb was so steep that huge profit taking will bound to happen. The transacted volume was high, and it will need to have an even greater volume to sustain the momentum of uptrend or the latest price gap will have to be covered soon.  
AEM daily chart at the close of 1 Feb 2018

As my current position in AEM, bought at $2.80 apiece, has been from house money, I am relatively at ease to make my decision to hold AEM till it hits my new target price of $6.35, corresponding to a forward p/e of 12x, unless the chart can warn me of imminent danger ahead.

Superphang

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