This Semi-Conductor stock is in Rare Air. Scott’s watching $AEHR Test Systems – October 17, 2022
AEHR SMH NVDA
This is Scott with your Chart of the Day. I want to take a look at Aehr Test Systems ( NASDAQ: AEHR ).
Now, Aehr ( NASDAQ: AEHR ), over the last couple of sessions here has been hovering around this red line. This red line is the 50-period simple moving average. It is a pretty key moving average that a lot of institutions look at as potential areas to buy and support stocks.
At least right here, right now they are supporting Aehr Test Systems ( NASDAQ: AEHR ) around the red line, around the 50-day moving average. If I zoom out here you can see, this is kind of in rare air, pardon the pun, because not only is it in an uptrend and above all the major moving averages, we have a little bit of a cup and a handle forming here.
The reason that is rare is that this is a semiconductor stock. And if I look at Semiconductor ETF ( NASDAQ: SMH ), this is a pretty strong downtrend. So I am paying attention to stocks like Aehr ( NASDAQ: AEHR ) that are holding up well in this market despite what the rest of the semiconductors are doing.
If you look at NVIDIA ( NASDAQ: NVDA ), a completely different chart. A pretty strong downtrend here, under all the major moving averages. Aehr ( NASDAQ: AEHR ) is above all the major moving averages. And also, earnings are out of the way so it’s not like you have to worry about earnings anytime soon.
This is definitely a stock that I am watching. It was up a lot today, up 13 percent. Now, that’s a hard buy in a market where buying strength hasn’t really been rewarding. But if we can break out of this clear downward trending trend line and clear resistance level and do it on pretty good volume. I think this stock has a pretty good chance to test that $20.00 level at and around its previous resistance zone.
So definitely an area I will be watching here on Aehr ( NASDAQ: AEHR ). I want to see it hold above that 8, 21-day, and ideally the 50-day moving average.
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