I'll keep it relatively brief.
Resistance all through 7-7.5c there's no real clear resistance point so it's a suck and see through there.
Breaking of the blue down trend should see a test of that area.
Support of trend at the green and probably around 5.5c-6c. Notice all the EMA's in that area.
I'm really 50:50 on movement. the MACD is softening and the stochastics are rolling slightly so maybe im 60:40 confident on downwards briefly. I'd want to see a cross the stochatics trend for a confirmation or MACD cross but at this stage would just be a hold for me on daily.
To the weekly.
Anddddd we don't really get any better understanding on the sort term view.
however, weekly green heiken is goodwith only one red candle in the middle this is still a continuation pattern. MACD still hasn't given a green light yet but a bee's proverbial away.
Stochastics have decided to head sideways providing no assitance either up on down.
Probably what's most telling about the AVZ weekly chart is that it should be pretty easy to the naked eye to see that a bottom appears to be in. So the probability of losing a swathe of cash relatively low IMV.
Strong support at 3.9 and 4.3c coloured orange and red as a reflection of the danger levels should these fall. 1.9c coloured brown to reflect the state of my pants should that ever occur. And top resistance in pink to reflect the envy of those who wished they pulled the trigger.
predictions. Well the T/A is telling me a very unsure market right now of AVZ. The wide band of low to high's shows there's extreme change in sentiment quickly. But current indicators seem to not know whether to discount the stock down to 4c or double it.
I imagine that the key piece of information underpinning the direction is offtakes. Market has left upside if it comes in to test 10c and above. but then also has that blue line around 5c should there be no news.
Instincts telling me we may see another test of that blue support which would probably be my next buy position. Any substantive news regarding the offtakes will increase funding likelihood immensely. I have quoted many times that i didn't view the DFS as a game changer but a means to and ends. This was 6 months prior to it being completed - a view i've maintained.
Usually DFS's is step 1 just allows conversations around offtake and finance to happen with a lot more confidence to the encumbered.
Offtakes is generally step 2. Ok, looks like you can supply us some stuff profitably. and it looks decent according to mets. Thanks.
Step 3 is the finance. Ok so you want how much money? right i see the DFS oh yes and you can guarantee this funding because you have an offtake agreement which means once we build this you have contracted revenues. Seems good to me.
I'm glossing a heap of detail but this is the crux of 5years from exploration to production. Steps 1/2/3 can occur all at the same time and more often than not offtakes is done with financier or a related entity. Why? well how better to ensure the offtaker doesn't default your finance is the offtake is you. How better to capitalise on the financing if you're the end user and know you can fulfill the end user demand.
Anyways. back to the chart.
Looks like a small channel in blue has formed with some pretty nice bands to top up and take profits in which is how i doubled my cash twice or better in the AVZO's. I haven't reloaded all that heavy as current with the profits, yet. But still holding my free-carried positions.
IMV test of support at 5.5/5.6c and maybe even further to 5c with no major news.
break upwards sends it into the lions den at 7-7.5c.
Long winded way of me saying from T/A it's a hold. 60:40 in favour of downward pressure.
*disclosure. Long since 2017. I buy and sell maybe every 3-6 months in the major lows and highs which are prescribed in my technical musings such as these.
SF2TH
(20min delay)