February was an exceptional month for Aedes. In fact, in two weeks, the shares gained over 100%. The exceptional nature of the rise is linked to the history of the stock which has never shone thanks to its positive performance. Suffice it to say that in the last 3 years the performance has been negative for over 80%.
The triggering cause of this weakness is linked to the fact that Augusto spa, controlling company of Aedes, had filed the application for admission to the arrangement with reserve pursuant to art. 161 of the bankruptcy law, stating that it is “in a phase of reversible and temporary financial imbalance”. Consequently, Augusto spa had given a mandate to Rothschild & Co Italia to sell the 51.25% stake in Aedes with an obligation to tender for the buyer. The rumors of a possible take over had, therefore, given Aedes wings, which had gained 100% in 2 weeks with volumes increasing sharply. However, after this exploit, Aedes shares have no directionality since mid-February.
As can be seen from the graph, in fact, all the bars following the week of February 21 were inside. This is definitely a negative. However, however, it should also be noted that the title was hardly affected by the effects of the war between Russia and Ukraine.
Finally, there is also another aspect that should not be overlooked. The maximum extension of the bullish projection passes in the 0.311 euro area. It is natural, therefore, that the title has difficulty in passing this level.
At present, only the breaking of one of the two extremes of the bar on 21 February (0.112 euro – 0.243 euro) could give direction to the prices. On the downside, the possible objectives are those indicated in the figure (dotted line). On the upside, however, we must wait for the inversion to calculate the objectives.
Since mid-February, Aedes shares have no directionality. When could you start up or down? The indications of the graphic analysis
The stock title Aedes (MIL: AED) closed the session on 10 May at € 0.2855, down by 3.27% compared to the previous session.
Weekly time frame
What will happen in the equity markets tomorrow? 11 and 13 May setups will expire