Short-term stochastics is at the bottom of its range, and 21-day RSI is at 30, a low level. ADX is at 32, a high level, suggesting that prices are likely to hit an excessively oversold level soon, at around mid-week next week.
Volume was elevated on June 22, but once this abates, the index should be able to stage a temporary bounce. At this stage, it is too eary to tell if the temporary bounce will turn into a relief rally.
The weekly chart shows a gradual downturn by annual momentum, with its own weighted moving average turning down a well. This suggests that a primary downtrend is forming. Support/breakdown was at 3,338, the April low, A break below this level indicates a downside measuring objective of 3,100.
AEM ($1.15) Short-term oversold
Prices regained their 200-day moving average at $1.13 on June 22. Short term stochastics is at the bottom of its range, and 21-day RSI touched a low of 26 before rebounding.
Some short-term stability should set it, with prices attempting to rebound towards $1.26.
Overall, though, the downtrend, which came in force at the end of May may not have run its course. The level to watch is $1.13 with a breakdown indicating a target of $1.
