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sameroo

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14/11/18

14:04

Post #: 36501529
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Originally posted by wilfran1pm: ↑

Hi @sameroo – I think you may find that pole and flag patterns are what are referred to as “continuation” patterns. In other words they are far more significant when they appear in a confirmed trend. The current trend for AVZ is sideways at best. Apart from the basic pattern and the overall context in which it appears you also have to consider both support and resistance levels. Have a look at the cycle-momentum daily chart for AVZ shown below.

View attachment 1362409

My short term cycle trade system did in fact signal a “go long” trade setup for AVZ at the Close yesterday. The cycle (stochastic) turned up and crossed its MA and Momentum (WaveTrend) is headed up and not overbought. The “go long” trade buy signal for me would be for AVZ to trade just above the High of 8.4c from yesterday. For me the “just above” distance is based on a small percentage of the ATR.
Now bringing support and resistance into the analysis, you can see that the AVZ SP has three levels of resistance very close to it. These are the 50 SMA, and the relatively high-volume Closes of 8.7c from 06/11 and 9c from 09/11 (which coincidentally is also the current level of the 50 SMA). I have found that recently the 50 SMA seems to be a major barrier to the SP of many small cap spec Lithium stocks. I would also check on the current state and direction of the NYSE.LIT ETF. I’ll leave that last check to you as for me the current price action tells me to stand aside.

All IMO of course. Good luck everyone.
p.s. notice that there was no mention of candle patterns or gaps in the above analysis.

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AVZ Price at posting: 7.8¢ Sentiment: None Disclosure: Held
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1 Great analysis

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