Weekly Pick: AEHR
No Story. Just Structure.
AEHR scored high Tier 1 this week and stands out as the cleanest setup on the board.
This is a structure trade. Nothing more. Nothing less.
Company Overview
Aehr Test Systems sells specialized burn-in and test systems to leading semiconductor manufacturers, with customers spanning automotive and power chip suppliers, AI processor designers, and large hyperscalers operating high-reliability data-center silicon.
This one is well known and the story is understood. What matters here are the charts.
Fundamentals and Ownership
Market capitalization $882M.
Marginally profitable with stretched valuation.
Institutions have 67% of the float and they continue to be steady net accumulators.
Insiders hold 7% of the float.
16.9% of the float is borrowed short; that’s elevated for some additional fuel but not part of the core thesis on the trade.
Technicals
Full bull structure above the EMA stack on all time frames.
On the Daily, price broke out, pulled back in an orderly fashion, and is holding above the 21 day EMA. Momentum is controlled. No failed breakout. No signs of distribution.
On the Weekly, a higher low is in place. The 21 and 50 week moving averages have been reclaimed and are holding. This is trend resumption, not a dead-cat bounce.
On the Monthly, AEHR completed a full expansion and correction cycle. The excess from the prior run has been worked off. Long-term structure is intact, and momentum is no longer stretched.
RSI is trending higher and with room for upside on all time frames.
Daily
Weekly
Monthly
Risks
With the 21 and 50 EMAs tightly stacked, a loss of the 50 EMA would signal a breakdown. This is a structure trade, and I’ll be disciplined if that structure breaks.
How I’m Trading It
I’ll be taking a position with shares. There’s decent options liquidity and I’m eyeing the March 30s as an add-on to a primary shares position.
ATR is 2.07, and 7.2% of the stock price, which makes AEHR meaningfully more volatile on a percentage basis than recent picks. With the 50 EMA ~17% below Friday’s close, a true breakdown would be costly, so position size matters here.
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