Welcome on my Chart Outlook BLOG.

AMS - a "normal" correction following a rise from 2009 to 2018 by 8952%

It is always sad to see investors suffering, when a bubble is bursting. It is not funny to see the Blood, Sweat and the Teers, when a stock collapses and loses 75% from its peak.
This is what has happened to the stock of AMS.

The trouble with the financial markets is that human emotions are absolute. This means they move along the linear scale. In other words, a rise from 100 to 120 is much more impressive than for example a rise from 10 to 12. Likewise, a decline from 120 to 100 feels worse than a decline from 12 to 10.
But, at the end of the day, it is the profit or loss, and this is counted in percentage terms. Or, in other words, on a logarithmic scale.

It will surprise you if you look at the lower chart below.
It is exactly the same chart of AMS. The difference is the one above has a linear scale and the lower chart has a logarithmic scale.
YES, you are correct: The success story of AMS began in 2009.
The low (or the starting point) was on 5.3.2009 at the price of SFR 1.3340.
From this low AMS rose to SFR 120.75 on 8.3.2018. Thus, the bull market has lasted for exactly 9 years, and it has gained 8952%.


The correction, which on the absolute chart above, appears as the end and the bankruptcy to AMS, is in reality, just a “normal” correction, if history is taken into account.
Growth and decay are ruled by the Golden Section. It becomes visible in its finest form in the logarithmic Growth Spiral.

The Fibonacci 38.20% support to the entire AMS-uptrend from 2009 to 2018 is at 22.
A slightly higher support from within the decline from March is around 25.50.

I BELIEVE THAT AMS WILL FALL TO around 22 and enter a sizable rebound from that level.
A failure to hold this level could mean more weakness to 17.

Rolf Bertschi