AVZ chart, page-11618

Not a proponent of the wave theories personally as I find them too subjective and open to interpretation. I read a book once where a index trader was devoted to using them for 15 years and abandoned them ultimately in favour of traditional FA and Pivot points. He became successful after he abandoned them. So as I don't like them generally don't comment on them.



However traditional TA suggests there is a very obvious and robust uptrend in play and within that a solid 6 day ascending triangle has developed which has all the hall markets of continuation of the uptrend these are, but not limited to:-

1. Horizontal resistance zone
2. Decreasing daily volume on avg
3. Decreasing daily trading range within triangle
4, Higher lows
5. Buyers have outnumber sellers on Q for duration of this formation 6 days (Freehold addition for smaller triangles)

Theory goes ...In ascending triangles trading is getting constrained into an ever narrowing zone creating implied/building up of buying pressure which can burst to the upside and unleash that pent-up demand . Ascending Triangles have a % probability of success (of up to 85%) in strong bullish markets (much lesser so in bear markets) . For confirmation you will need a strong breakout and close above upper resistance line with uptick in volume. A break and close below the ascending triangles lower support line may indicate a possible failure, however, sometimes can result in the redrawing of the lower support line at a flatter but still upwards angle simply meaning a time delay for the breakout day.


Of course if you add that the FA specifics

1. Bullish world wide markets generally
2. Very bullish Lithium Sector
3. Extremely bullish short term AVZ FA catalysts for this stock

Then "your weight of evidence" increases supporting a possible breakup.