Tech Stock Pullback for Bulls to Watch

AEHR has dipped slightly after soaring to record highs

Laura McCandless

Deputy Editor

Aug 14, 2023 at 3:30 PM

AEHR

One of our top stock picks for 2023, Aehr Test Systems (NASDAQ:AEHR), is looking particularly attractive right now. Outperforming with a 126.1% year-to-date lead, AEHR is in the midst of a pullback following its Aug. 1 record high of $54.10. This dip has also placed the secuirty within one standard deviation of its 40-day moving average, which has been a good sign for the shares in the past.

According to Schaeffer's Senior Quantitative Analyst Rocky White, AEHR has run into this trendline four times in the past three years. The stock was higher one month later after each of these signals, averaging an 8.4% gain.

AEHR Aug14

Furthermore, though short interest has been unwinding -- down 15.2% in the past two weeks -- the 5.07 million shares sold short still account for a hefty 19.4% of the stock's available float. It would take shorts over four days to cover their bets, at AEHR's average pace of trading.

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