avb looking primed for an uptrend

Good evening all,

Been watching AVB from the sidelines for a few months now, constantly procrastinating for a good entry point to get in.

Fundamentals look strong with plenty of discovery upside to come from the Rio Verde project (I got on this stock initially from 7 cents from the initial spectacular drill result and sold out at 9 to pursue other interests - which turned out to be profitable, but not as profitable as this one could have been). As the Quarterly draws near and drill results expected to be promising, it makes sense to be on this one.

I have decided to pounce in sometime this week, probably sometime on Thursday. Here are some notes that I made on the AVB chart to support my entry.



Volume - Volume has not been as spectacular as before - has seen better days. Having low volume while in a descending triangle/wedge is a good thing and the few big bites over the last few weeks show to me that some big dollars have jumped on and are getting their tickets to the game (Quarterly, drill results etc) early.

Low volume could also suggest patient waiting on the sidelines and some shorter term investors looking for direction. NEUTRAL.

Fast Stochastics - Fast stochs have been travelling parallel to to the price of AVB as of late - which is not a bearish signal and is mildly bullish.

With F Stochs looking like it has reached a v-point minima with a bullish crossover looking imminent, this could lead to the catalyst that will set this stock back on a uptrend, breaking the descending wedge pattern and get the bulls running again. I would call this BULLISH.

MACD - The MACD has been small and hugging each other for awhile indicating low medium term volatility (especially prior to January).

A recent bearish crossover occurred on around the 18th and supported the trend down. After having tested the long range resistance line (the fat red line) several times, the bears appear to be losing strength and a bullish signal on the F Stochs could set the firing shot for this indicator to swing to a bullish uptrend. As this crossover is still relatively fresh I would call it BEARISH, but I dont think this will last for long.

RSI - The trend pattern for this indicator has so far been downward sloping (forgot to draw the line so imagine it) in line more or less with the price of the underlying security - further strengthening the argument that there has been no real selling pressure on this stock but rather more of a case of 'ebbs and flows' waiting in anticipation - this is a NEUTRAL signal so far.

Having the RSI hover down to the 50 mark, it is tending towards "oversold" levels.

If the price of AVB continues the downward trend pattern and RSI remains flat (from no panic selling) then this will create a positive divergence and provide a strong signal to investors that an uptrend is at hand and for those sitting on the sidelines to buy in.

Candle - Last candle was a bullish gravestone doji which shows that the bears are losing strength and the bulls are back in town.

This further adds to the argument that triple tests on the resistance line lately have been tested successfully, and we are potentially on the cusp of a new uptrend.

Tea leaves/ Star-gazing/ Crystal balling - Long term resistance line will hold or could be up for a brief 4th test before a slow uptrend leading towards announcement time. I dont see from where I stand a case for break in support.

If it does break this would be a clear bearish signal.

Looking at other indicators and taking into account the fundamentals of this company and the positive drilling results which are being backed up as we speak, a break of support, IMO, would be unlikely.

As usual, any constructive comments, improvements and additions are welcome :)

Foxtrot