I agree with all the positive sentiments expressed re AVO. However, the gold bugs index (HUI) has been in decline in the past week or so and may continue for a week or so more. The gold price could fall back to US$875. Nonetheless the uptrend is preserved with the gold price riding above the 50 day MA. Once the HUI and gold price resume their bullish advance AVO should, IMO, move to test A$3.00.
Margin call selling by leveraged funds has been a depressant on high risk stocks such as gold. People have been putting money into treasuries and defensive ASX 300 stocks given the recent 20% market correction. It is worth rememebring some stocks are now 50% below their August highs.
AVO Price at posting:
0.0¢ Sentiment: None Disclosure: Held
