I believe today (along with the next few trading days) is AIM's moment of truth. The state of the global markets is always going to be the biggest red herring IMO , especially for companies trying to fund projects and its certainly been my biggest fear over the past month or so as the signs are there the bull market is unwinding, and a 25 year super cycle completing .
AIM has retraced today just below the EW lower target of 29c (really didn't want to go here but expect the unexpected) . There are some interesting technical points to note - the retracement is now just beyond 61.8% in a clear ABC pattern and has also stopped right around the last wave retracement of one lesser degree (ie. 27.5c) . All of this fits a higher degree Wave 2 retracement following the laws of EW . We got deeper than the 50% retrace (31c) but panic can do this. If Aim is to confirm that it is not a spent force and it hasn't put a top in place , I believe the following must occur pretty much in this order:
1) 28c (or 27.5c) not to be broken or seen again for some time. 2) Aim ideally to show some strength today and finish above its open - volume is strong so we don't want it to finish on its lows today or we could have a problem 3) Aim to fill the gap back up to 32.5c over the coming days but not be repelled back down after it. If it repels , it could be a sign of serious weakness. 4) Aim to break back past (and close above) 34c as this will potentially negate a potentially bearish scenario and from an EW perspective 5) Aim to head back into new highs.
This is the spike down I was personally wanting (be careful what you wish for) so we could speed up the corrective process. Plus if the stock is strong (?) , it will bring out the smart money who have obviously been sitting on their hands behind the scenes .... if AIM doesn't bring out these buyers today via a strong finish , we need to stay on RED ALERT !!! There must be clear buying evidence today !!!!!
So far so good today but the footprints wont be clear until 4.10p.m , then over the following few days for confirmation.
Hey Hoofa, only pass me a sick bag if none of the above becomes fulfilled, but until then, I'll just enjoy the free beer and JD up the front of the plane !!!
tough day at the office today but one step at a time here and be open minded to what could be unfolding.
ECN
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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