SG Stock To Watch : AEM Holdings (AWX)
$AEM SGD(AWX.SI)$ has closed 1.70% higher on 19 Oct 2023 (Thursday) trading close.
There is potential in this stock as Intel, a key customer of AEM has announced further expansion plans in 2023 that suggest there will be increased demand for AEM's services. The actual return of client demand should be seen in 2024-2025.
There will be a new semiconductor assembly-and-testing facility in Poland to meet the demand Intel is expecting to emerge by 2027. Intel's multi-phase expansion project in Malaysia consists of several facilities and is likely to start production in early 2024, for which Intel could place orders.
These should bring demand for the testing services from AEM in due course. In this article, I will be showing how AEM is showing potentials from the Technicals.
Technical Indicator - Simple Moving Average (SMA) - 50-day MA period
AEM is currently trading above 50-day MA period and it look like there is small dip but should stay at this level for a while.
There have been good news on Intel which is AEM’s key customer. Demand for AEM services should be picking up.
Technical Indicator - Average Directional Index (ADX)
ADX is currently below 20 which indicate a weak trend, but +DI is above -DI suggesting a bullish upside move. I would be watching AWX closely as I am expecting AWX to move into developing trend soon for ADX.
There is potential demand for AEM services and the semiconductor should be picking up.
Technical Indicator - Relative Strength Index (RSI)
RSI is not showing much signal from traders and investors, it did try to go into overbought region but it start to retreat.
We might not see a lot of buying but it should build up over time.
Summary
Based on what we have observed, AEM should give a potential upside if it continue its run on the 50-day MA period. There is bullish upside move from ADX +DI.
I will be monitoring how AEM would be trading on 20 Oct 2023 to see if buying interest pick up.
Appreciate if you could share your thoughts in the comment section whether you think AEM would be moving in upside trend from tomorrow (20 Oct).
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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